Facts of the Case

Disciplinary proceedings were initiated against CA Deepak Aggarwal following information and investigation by the Central Bureau of Investigation, Anti-Corruption Branch, New Delhi. The Respondent was a partner of M/s P.K. Garg & Associates and represented Shri Krishan Kumar (client) in income-tax assessment proceedings for Assessment Year 2013–14 before Shri P.R. Meena, Income Tax Officer.

It was alleged that illegal gratification of ₹3.5 lakhs was demanded by the Income Tax Officer for settling the assessment and that the Respondent acted as an intermediary and facilitator in arranging and handing over the bribe amount. A CBI trap was laid on 22 April 2016, during which bribe money was recovered and the Income Tax Officer was caught red-handed. The Respondent was alleged to have accepted the bribe amount from the complainant and handed it over to the public servant.

Issues Involved

Whether the Respondent abetted and facilitated bribery to influence income-tax assessment proceedings, acted as a co-conspirator with a public servant, and whether such conduct amounted to “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949.

Authority’s / Prosecution Allegations

The prosecution relied upon CBI FIR, charge sheet, trap proceedings, recovery memos, recorded telephonic conversations, forensic voice examination reports and witness statements to allege that the Respondent knowingly facilitated payment of illegal gratification and acted as a link between the complainant and the Income Tax Officer.

Respondent’s Arguments

The Respondent denied the allegations and contended that he was falsely implicated, that he was unaware of any bribe demand, and that he did not conspire with the Income Tax Officer. He raised objections regarding evidentiary value of recorded conversations, alleged procedural lapses, and submitted that criminal proceedings were pending and disciplinary action should not be concluded on disputed evidence.

Court / Authority Order and Findings

The Board of Discipline examined the CBI charge sheet, witness statements, transcripts of recorded conversations, forensic voice examination report, recovery proceedings and submissions of the Respondent. The Board noted that recorded telephonic conversations clearly indicated negotiations regarding bribe amount and the Respondent’s role in coordinating the transaction. The forensic voice examination confirmed the probability of the Respondent’s voice in the recorded calls.

The Board observed that the Respondent accepted the bribe amount from the complainant and handed it over to the Income Tax Officer, thereby acting as a facilitator and co-conspirator. The Board rejected the defence that the Respondent was merely acting under pressure or without knowledge, holding that a Chartered Accountant is expected to resist and report illegal demands rather than participate in them.

The Board held that offering and facilitating bribe to a public servant to perform a public function is a serious offence and conduct clearly unbecoming of a Chartered Accountant, bringing disrepute to the profession.

Important Clarification

The Board clarified that Chartered Accountants must uphold the highest standards of integrity and are strictly prohibited from facilitating bribery or illegal gratification in any statutory or quasi-judicial proceedings. Participation in such acts constitutes grave professional misconduct irrespective of the outcome of criminal proceedings.

Final Outcome

The ICAI Board of Discipline held CA Deepak Aggarwal (M. No. 092865) guilty of “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22. In exercise of powers under Section 21A(3) of the Act, by order dated 19 April 2023, the Board directed removal of the name of the Respondent from the Register of Members for a period of one (1) year and imposed a monetary fine of ₹1,00,000 (Rupees One Lakh only).

Source Link- https://www.mytaxexpert.co.in/uploads/1768820134_CA.DeepakAggarwalM.No.092865DelhiinRe..pdf

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