Facts of the Case

Disciplinary proceedings were initiated against CA Nikhil P. Shah pursuant to information received from the Examination Department of the Institute of Chartered Accountants of India. The matter related to an incident dated 7 June 2019, during the conduct of Paper 6 – Information Systems Controls & Audit of the CA Final Examination at Pune Global School & Junior College of Science and Commerce, Pune, Maharashtra.

The Respondent visited the examination centre and represented himself as a Special Observer deputed by the Pune Branch of ICAI. He failed to produce any appointment letter or authorisation when demanded by the Centre Superintendent. Due to his representation as a member of ICAI, the school authorities and centre staff mistakenly believed him to be an authorised observer and permitted him to remain inside the examination centre for several hours, during which he made multiple rounds of inspection.

Subsequently, the Centre Superintendent and Official Observers reported the incident to ICAI, stating that the Respondent was not authorised by either the Pune Branch or the Central Examination Committee to act as an observer.

Issues Involved

Whether the Respondent made false representations to gain unauthorised access to a Chartered Accountants examination centre, and whether such conduct amounted to conduct unbecoming of a Chartered Accountant constituting “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949.

Petitioner’s / Institute’s Case

The Institute contended that the Respondent unauthorisedly entered a highly confidential examination centre by falsely holding himself out as a Special Observer. The ICAI Examination Committee strongly disapproved of the Respondent’s conduct and referred the matter to the Disciplinary Directorate.

It was submitted that the sanctity and confidentiality of the CA examination process is of paramount importance, and any unauthorised access based on false statements seriously undermines the credibility of the examination system and the profession as a whole.

Respondent’s Arguments

The Respondent admitted visiting the examination centre and submitted that the incident occurred due to an unintentional mistake. He stated that he believed he had been appointed by the Pune Branch and sought forgiveness for the lapse.

The Respondent further submitted that he was facing severe personal and financial hardship due to the COVID-19 pandemic, that his practice was on the verge of closure, and requested the Board to take a lenient view. He expressed remorse and stated that he had nothing further to submit beyond his written representation.

Court / Authority Order and Findings

The ICAI Board of Discipline examined the emails of the Centre Superintendent, statements of Official Observers, correspondence from the Pune Branch, and the written submissions of the Respondent. The Board observed that the Respondent entered the examination centre by giving false statements, which is an act not expected from anyone, particularly a Chartered Accountant.

The Board noted that the Respondent remained at the centre for a considerable duration and inspected the premises without any authorisation. The Board rejected the plea of inadvertent error, holding that the conduct demonstrated lack of professional judgment and ethical responsibility.

The Board held that CA examinations are events of high importance and confidentiality, and any unauthorised access based on misrepresentation is clearly unbecoming of a Chartered Accountant and brings disrepute to the profession.

Important Clarification

The Board clarified that professional misconduct is not restricted to acts done in professional assignments alone. Any conduct involving false representation, especially in matters concerning ICAI examinations, strikes at the core of professional integrity and squarely falls within the ambit of “Other Misconduct”.

Final Outcome

The ICAI Board of Discipline held CA Nikhil P. Shah (M. No. 156463) Guilty of “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22.

By order dated 10 January 2022, the Board Reprimanded the Respondent.

Source Link-  https://www.mytaxexpert.co.in/uploads/1768900109_CA.NikhilP.ShahM.No.156463Pune.pdf

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