Chapter VII
PENALTIES
24. Penalty for falsely claiming to be a member, etc.
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.
24-A. Penalty for using name of the Council, awarding degrees of chartered accountancy, etc.
[i][24-A. Penalty for using name of the Council, awarding degrees of chartered accountancy, etc.—(1) Save as otherwise provided in this Act, no person shall—
(i) use a name or a 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;
(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 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.
(3) [ii][* * *].]
25. Companies not to engage in accountancy.
25. Companies not to engage in accountancy.—(1) No company, whether incorporated in India or elsewhere, shall practise as chartered accountants.
[iii][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 (1), then, without prejudice to any other proceedings which may be taken against the company, every director, manager, secretary and any other officer 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.
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 chartered accountant [iv][in practice] or a firm of [v][such] chartered accountants in his or its professional capacity.
[vi][(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 than ten thousand rupees but which may extend to two lakh rupees or with both.]
27. Maintenance of branch offices.
27. Maintenance of branch offices.—(1) Where a chartered accountant [vii][in practice] or a firm of [viii][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 chartered accountant [ix][in practice] or a firm of [x][such] chartered accountants from the operation of this sub-section.
(2) Every chartered accountant [xi][in practice] or a firm of [xii][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.
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.
References
[i] Inserted by Act 15 of 1959, Section 21 (w.e.f. 1-7-1959)
[ii] Omitted by Act 9 of 2006, Section 22 (w.e.f. 8-8-2006).
[iii] Inserted by Act 3 of 2012, Section 3 (w.e.f. 1-2-2012).
[iv] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[v] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[vi] Substituted by Act 9 of 2006, Section 23 (w.e.f. 8-8-2006).
[vii] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[viii] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[ix] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[x] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[xi] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
[xii] Inserted by Act 15 of 1959, Section 22 (w.e.f. 1-7-1959).
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