Page 419 - CA Final PARAM Digital Book.

Answer ➢ Engaging into Agricultural Activity: As per Clause (11) of Part I of First Schedule of Chartered
Accountants Act, 1949, a Chartered Accountant in practice is deemed to be guilty of professional
misconduct if he engages in any business or occupation other than the profession of Chartered
Accountant unless permitted by the Council so to engage.

➢ However, the Council has granted general permission to the members to engage in certain specific
occupation. In respect of all other occupations specific permission of the Institute is necessary.
➢ In this case, CA. Sanyam is owner of 3 agriculture lands, and he is carrying out agricultural activities
which is covered under the general permission.

➢ Therefore, CA Sanyam is not guilty of professional misconduct under Clause (11) of Part I of First
Schedule of Chartered Accountants Act, 1949 and complain of neighbor to the Institute is not
correct.

First Schedule, Part I,Cl,11 --Specific Permission (After Old Course – (M10E, M16M, PM17, SM17,
QNO Accepting Job) N17M, N18M, M18M)
719.000
TITANIUM CNO – PE.1280 New Course-(SM23)
CA. Aman, a practicing Chartered Accountant, took over as the executive chairman of Signora IT Ltd.
on 01.04.2016. However, realizing about obtaining prior approval from the Council of the ICAI for engaging

into other business, he applied to the Council for permission within 10 days
Answer Part I -- Relevant Laws
▪ Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949

▪ Regulation 190A to the Chartered Accountants Regulations, 1988
Part II -- Requirements of Relevant Laws
➢ Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949
A Chartered Accountant in practice will be deemed to be guilty of professional misconduct if he
engages in any business or occupation other than the profession of Chartered Accountant unless
permitted by the Council so to engage.

➢ Regulation 190A of the Chartered Accountants Regulation, 1988
A Chartered Accountant in practice shall not engage in any other business or occupation other than
the profession of accountancy except with the permission granted in accordance with a resolution
of the Council. According to the same, specific permission from the council would be necessary for
holding office of managing director or a whole-time director of a body corporate.

Part III – Case Discussion
➢ In the instant case, CA. Aman took over as the executive chairman on 01.04.2016 and applied for
permission later. Based on the given facts, he was engaged in other occupation, after 01.04.2016
and before the application for approval, without the permission of the Council.

Part IV – Conclusion
➢ Therefore, CA. Aman is guilty of professional misconduct in terms of Clause (11) of Part I of First
Schedule to the Chartered Accountants Act, 1949.

First Schedule, Part I,Cl,11 --Specific Permission (No Permission & Old Course – (PM17)
QNO No Intimation to ICAI)
720.000
TITANIUM CNO – PE.1280
Mr. J started his practice as Chartered Accountant in 2014. During 2015, he got an offer for the post of
Chief Accountant of a Software Development Company, as a fulltime employee, for a salary of `
60,000 per month. On accepting this offer, Mr. J converted his practice into a partnership firm by taking

a fresh Chartered Accountant as his partner. Mr. J neither intimated the Institute nor obtained
permission from the Institute about his employment. Will Mr. J be held guilty under the Chartered

Accountants Act?
Answer Part I -- Relevant Laws
▪ Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949

▪ Regulation 190A to the Chartered Accountants Regulations, 1988
Part II -- Requirements of Relevant Laws

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