TaxTMI 
TaxTMI 
TaxTMI 
2011 (8) TMI 972
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....Private Limited in violation of provision of Clause (4) of Part-I, First Schedule of Chartered Accountants Act, 1949 ("the Act" for short). (ii) The appellant violated the provisions of Regulation 190A of Chartered Accountants Regulations 1988 (the Regulations) by engaging in the business activities; (iii) the appellant violated the provisions of Clause 1 of Part-II of Second Schedule of the Act by having more than 20 per cent shares in the aforesaid company in his name and in the name of his wife and son; (iv) the appellant committed various acts of perjury such as he gave contradictory information to the court regarding the registered office of the company. (v) He also contradicted and gave false information to different Local Commissione....
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....under section 21(4) of the Act. A show-cause notice was issued to the appellant in this regard. The Council vide its decision dated 4-7-1998 decided to remove the name of the appellant from the List of Members for a period of six months. 4. The appellant has challenged the same by filing the present appeal alleging findings of the Disciplinary Committee to be based on conjectures and surmises. It has been averred that the Disciplinary Committee erred in not appreciating the fact that there was no need for the appellant to act as a "Functional Director" inasmuch as the company had a full-time Executive Director i.e., respondent No. 2, General Manager, Consultant and Commercial Manager to deal with the affairs of the company. He averred that....
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....ng a Director of the said company in the 'entry record' dated 1-5-1987 submitted by him along with his remittance to the Institute for renewal of his membership within 4 days of his becoming Director of the company and also disclosed that he was devoting one hour per day and 7 hours a week in the activities of the company. He pleaded that in response to above, he received a communication from the Institute advising him to submit the request for permission in the prescribed format under Regulation 166 of the Regulations and that he complied with the same vide application dated 20-6-1987. He averred that no further communication was received from the Institute in this regard, that the Ex-Office Assistant Secretary of the Institute vide his le....
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....r the name and style of M/s Sai Beverage Private Limited. The said company was incorporated on 16-4-1987 with the appellant and respondent No. 2 as the only Directors holding equal shares. The appellant stated that he was not engaged as whole-time Director or Managing Director and has never managed the substantial work of the company, which was being looked after by the General Manager and respondent No. 2 as its Executive Director. The appellant in the grounds of appeal has admitted that as Director of the company his role was to handle the bank operations of the company including obtaining loans from the banks and to look after the accounting records of the company. It was also an admitted case that the appellant and respondent No. 2 were....
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....g and that of his wife and son in the said company to the extent of Rs. 10,60,000 apart from shareholding of the M/s Sai Impex Pvt. Ltd which company was stated to be pertaining to his son. In addition, it was also seen by the Disciplinary Committee from the record that Shasi and Indu Aggarwal who had the same address as that of the appellant were also shareholders and thereby the shareholding of the appellant and his family group was as much as 69.2 per cent. The appellant's son Vikas Rai was also examined. He stated to be working in the company as an apprentice. 6. Considering the submissions and evidence on record, the Disciplinary Committee arrived at the conclusion that the appellant never made any application for obtaining permission....