Facts of the Case

The disciplinary proceedings arose from information received by the Institute of Chartered Accountants of India regarding the conduct of CA Bimal Kumar Nohria in relation to his correspondence with officers of the Income Tax Department, Chandigarh. The Respondent represented an assessee in income-tax proceedings for various assessment years between 2006–07 and 2012–13.

In multiple letters addressed to Income Tax authorities, copies of which were also marked to senior officials and other authorities, the Respondent used language which was alleged to be discourteous, derogatory and unprofessional. The letters contained remarks questioning the conduct, integrity and functioning of tax officials and used expressions that were alleged to demean the Income Tax Department while representing the interests of his client.

The Director (Discipline) initially formed a prima facie opinion holding that the Respondent was not guilty. However, upon examination of the material, the Board of Discipline differed with the prima facie view and proceeded to examine the matter in detail under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949.

Issues Involved

Whether the use of discourteous, derogatory and inappropriate language by the Respondent in official correspondence with Income Tax authorities, while representing a client, amounted to “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22.

Respondent’s Submissions

The Respondent submitted that the letters were written in the interest of his client and were based on information provided by the assessee. He contended that the correspondence was necessitated due to delay and alleged inaction by the Income Tax Department in processing refunds. The Respondent further argued that disciplinary proceedings are quasi-criminal in nature and that misconduct must be proved beyond reasonable doubt, which, according to him, was not satisfied in the present case. He relied upon various judicial precedents relating to standards of proof in disciplinary proceedings.

Court / Authority Order and Findings

The Board of Discipline carefully examined the correspondence addressed by the Respondent to the Income Tax Department and noted that the language used therein was clearly discourteous, derogatory and inappropriate for a Chartered Accountant communicating with Government authorities. The Board observed that even while representing clients zealously, a Chartered Accountant is expected to maintain dignity, restraint and professional decorum in official communications.

The Board held that grievances against tax authorities must be raised through proper legal channels and in respectful language. Use of expressions that demean officials or the institution itself was held to be unbecoming of a member of the Institute. The Board rejected the contention that the correspondence was justified merely because it was written in the interest of the client, observing that professional conduct is not diluted by the nature of grievance.

The Board concluded that the Respondent, being a senior member of the profession, failed to uphold the standards of professional behaviour and ethics expected of a Chartered Accountant. Such conduct was held to bring disrepute to the profession and squarely fell within the ambit of “Other Misconduct” under Item (2) of Part IV of the First Schedule.

Important Clarification

The Board clarified that while Chartered Accountants are entitled to represent their clients and raise grievances before Government authorities, such representation must always be carried out in a dignified, courteous and professional manner. Use of abusive, derogatory or intemperate language in official correspondence is impermissible and constitutes professional misconduct irrespective of the merits of the underlying grievance.

Final Outcome

The ICAI Board of Discipline held CA Bimal Kumar Nohria (M. No. 081459) guilty of “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949. In exercise of powers under Section 21A(3) of the Act, by order dated 22 April 2022, the Board reprimanded the Respondent.

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