24. Penalty for falsely claiming to be a member,
etc.
Any person who −
(i) not being a member of the Institute −
(a) represents that he is a member of the
Institute; or
(b) uses the designation Chartered
Accountant; or
(ii) being a member of the Institute, but not having
a certificate of practice, represents that he is in
practice or practises as a chartered
accountant, shall be punishable on first
conviction with fine which may extend to one
thousand rupees, and on any subsequent
conviction with imprisonment which may
extend to six months or with fine which may
extend to five thousand rupees, or with both.
1[24A. Penalty for using name of the Council,
awarding degree of chartered accountancy,
etc.
(1) Save as otherwise provided in this Act, no
person shall−
(i) use a name or the common seal which is
identical with the name or the common
seal of the Institute or so nearly
resembles it as to deceive or as is likely
to deceive the public;
58
(ii) award any degree, diploma or
certificate or bestow any designation
which indicates or purports to indicate
the position or attainment of any
qualification or competence similar to
that of a member of the Institute; or
(iii) seek to regulate in any manner
whatsoever the profession of
chartered accountants.
(2) Any person contravening the provisions of subsection (1) shall, without prejudice to any
other proceedings which may be taken
against him, be punishable with fine which
may extend on first conviction to one
thousand rupees, and on any subsequent
conviction with imprisonment which may
extend to six months, or with fine which may
extend to five thousand rupees, or with both.
2
[(3) ……….]
25. Companies not to engage in accountancy
(1) No company, whether incorporated in India or
elsewhere, shall practise as chartered
accountants.
3
[Explanation − For the removal of doubts, it
is hereby declared that the “company” shall
include any limited liability partnership which
has company as its partner for the purposes
of this section.]
(2) If any company contravenes the provisions of
sub-section (i), then, without prejudice to
any other proceedings which may be taken
against the company, every director,
manager, secretary and any other officer
59
thereof who is knowingly a party to such
contravention shall be punishable with fine
which may extend on first conviction to one
thousand rupees, and on any subsequent
conviction to five thousand rupees.
26. Unqualified persons not to sign documents
(1) No person other than a member of the
Institute shall sign any document on behalf of
a 4
[chartered accountant in practice or a firm
of such chartered accountants] in his or its
professional capacity.
5
[(2) Any person who contravenes the provisions of
sub-section (1) shall, without prejudice to any
other proceedings, which may be taken
against him, be punishable on first conviction
with a fine not less than five thousand rupees
but which may extend to one lakh rupees, and
in the event of a second or subsequent
conviction with imprisonment for a term which
may extend to one year or with fine not less
ten thousand rupees but which may extend to
two lakh rupees or with both.]
27. Maintenance of branch offices
(1) Where a 6
[chartered accountant in practice or a
firm of such chartered accountants] has more
than one office in India, each one of such
offices shall be in the separate charge of a
member of the Institute:
Provided that the Council may in suitable
cases exempt any 7
[chartered accountant in
practice or a firm of such chartered
accountants] from the operation of this subsection.8
60
(2) Every 9
[chartered accountant in practice or a
firm of such chartered accountants]
maintaining more than one office shall send
to the Council a list of offices and the
persons in charge thereof and shall keep the
Council informed of any changes in relation
thereto.
28. Sanction to prosecute
No person shall be prosecuted under this Act except
on a complaint made by or under the order of the Council
or of the Central Government.
____________________
1 Inserted by the Chartered Accountants (Amendment) Act, 1959.
2 The following sub-section (3) omitted by the Chartered
Accountants (Amendment) Act, 2006 w.e.f. 8th August, 2006 :−
“(3) Nothing contained in this Section shall apply to any
University established by law or to any body affiliated to the
Institute.”
3 Inserted by the Chartered Accountants (Amendment) Act, 2012
and came into force w.e.f. 1st February, 2012.
4,6,7&9 Substituted for the words, ”chartered accountant or a firm of
chartered accountants” by the Chartered Accountants
(Amendment) Act, 1959.
5 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006 :−
“(2) Any person contravening the provisions of sub-section
(1) shall, without prejudice to any other proceedings, which may
be taken against him, be punishable with fine which may extend
on first conviction to one thousand rupees, and on any subsequent
conviction with imprisonment which may extend to six months or with
fine which may extend to five thousand rupees or with both.”
8 For the Resolutions passed by the Council, please see Appendix
No. (16).