Saturday, July 30, 2016

CA shall not be deemed to be in practice if he is only running coaching classes for CA aspirants

Where a CA has given undertaking before Court (on charges of professional misconduct) that he would voluntarily not practice the profession of CA till next hearing, he could not be said to be practicing a CA profession when he has issued advertisements offering to take coaching classes to CA aspirants. Thus, such action of CA couldn’t treated as Contempt of Court. 
Facts:
a) Vinod Gupta, a CA had given an undertaking before Court (on charge of professional misconduct) that he would voluntarily not practice the profession of CA till the next date of hearing.
b) Later the respondent issued an advertisement offering to take coaching classes for CA asprints.
c) The petitioner filed a contempt petition contending that the respondent had willfully violated the contempt of court by issuing advertisements representing himself as a Chartered despite giving the undertaking that he would not practice the profession of CA till the next date of hearing.
The High Court held as under:

1) Issuance of advertisement offering to take coaching classes and to impart training to aspirants of the profession of Chartered Accountancy couldn’t be treated as to carry on the profession of chartered accountancy.

2) The allegations against the respondent did not amount to contempt of court. - [2016] 71 taxmann.com 371 (Delhi)
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