🤔 Can ICAI take action only against individual members for professional misconduct and not against a CA firm as a whole?
Delhi High Court disposed 10 writ petitions in this regard. In its judgement dated 3 July 2024, the Delhi High Court held:
1. 📌 Considering the scheme of the Act, particularly Sections 21A, 21B and Rule 8, ICAI is fully empowered to take action against firms as well.
2. 📌 Rule 8(2) of The Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules 2007 should not be interpreted to mean that action could be taken against a firm only if no member was nominated by the firm for this purpose.
3. 📌 There is an imminent need to notify amendments of 2022 to the Act to strengthen ICAI and to set out a framework in which multinational accounting firms could operate in India.
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