Institute of Chartered Accountants of India V. Union of India, Ministry of Corporate Affairs and Union of India, Ministry of Skill Development and Entrepreneurship and Union of India, Ministry of Finance Department of Financial Services and University Grants Commission and Regional Director, South East Region, Ministry of Corporate Affairs and Institute of Chartered Tax Practitioners India and Management and Entrepreneurship and Professional Skills Council and National Council for Vocational Education and Training and Medhavi Skills University

WP/28805/2024

AI Insights

The case involves the Institute of Chartered Accountants of India (petitioner) filing a writ petition against the Institute of Chartered Tax Practitioners India and other respondents, seeking action against the latter for offering courses and issuing licenses that the petitioner argued could mislead the public regarding their affiliation with the Institute of Chartered Accountants of India. The court examined the affidavits and memos exchanged between the parties, which included commitments from the respondent No.6 to clarify its non-affiliation and the scope of its courses through disclaimers on its website and course materials. The court also addressed procedural issues regarding the submission of applications by non-company entities, directing necessary changes to ensure compliance and accessibility.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800265 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-12-2024
• Assessment Year: misc
• Laws Referred To: Chartered Accountants Act, 1949, Companies Act, 2013, University Grants Commission Act, 1956
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: SHANTHI BHUSHAN; H R SHOWRI; VIKRAM HUILGOL; RAGHURAM CADAMBI
• Assessee Lawyers: S SRIRANGA; SUMANA NAGANAND
• Keywords: Affidavit; Custom Broker; Disclaimer; Mandamus; Tax Practitioner; Writ petition; GST Practitioner
• Section: 226

Judgement Text

" - 1 - NC: 2024:KHC:53013 WP No. 28805 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF DECEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 28805 OF 2024 (EDN-RES) BETWEEN: THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, A STATUTORY BODY CONSTITUTED UNDER THE PROVISIONS OF THE CHARTERED ACCOUNTANTS ACT, 1949. HAVING ITS HEAD OFFICE AT ICAI BHAWAN, INDRAPRASTHA MARG, NEW DELHI - 110 002. REPRESENTED BY ITS SECRETARY SHRI. CA (DR.) JAI KUMAR BATRA. …PETITIONER (BY SRI. S.SRIRANGA, SENIOR ADVOCATE FOR SMT. SUMANA NAGANAND., ADVOCATE) AND: 1. UNION OF INDIA, REPRESENTED THROUGH, MINISTRY OF CORPORATE AFFAIRS, HAVING ITS OFFICE AT A WING, SHASTRI BHAWAN, RAJENDRA PRASAD ROAD, NEW DELHI - 110 001. REPRESENTED BY ITS SECRETARY. Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:53013 WP No. 28805 of 2024 2. UNION OF INDIA, REPRESENTED THROUGH, MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP, HAVING ITS OFFICE AT KAUSHAL BHAWAN, NEW MOTI BAGH, NEW DELHI - 110 023. REPRESENTED BY ITS SECRETARY. 3. UNION OF INDIA, REPRESENTED THROUGH, MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES, HAVING ITS OFFICE AT JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI - 110 001. REPRESENTED BY ITS SECRETARY. 4. UNIVERSITY GRANTS COMMISSION, A STATUTORY BODY ESTABLISHED UNDER THE PROVISIONS OF THE UNIVERSITY GRANTS COMMISSION ACT, 1956 REPRESENTED THROUGH THE DEPARTMENT OF HIGHER EDUCATION, MINISTRY OF EDUCATION, GOVERNMENT OF INDIA. HAVING ITS OFFICE AT BAHADUR SHAH ZAFAR MARG, NEW DELHI - 110 002. REPRESENTED BY ITS SECRETARY. 5. REGIONAL DIRECTOR, SOUTH EAST REGION, MINISTRY OF CORPORATE AFFAIRS, HAVING ITS OFFICE AT 3RD FLOOR, CORPORATE BHAVAN, BANDLAGUDA, NAGOLE, TAATIANARAM VILLAGE, HAYAT NAGAR MANDAL, - 3 - NC: 2024:KHC:53013 WP No. 28805 of 2024 RANGA REDDY DISTRICT, HYDERABAD-500068, TELANGANA. 6. INSTITUTE OF CHARTERED TAX PRACTITIONERS INDIA, A SECTION 8 PUBLIC COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT TPI BHAVAN, 313, 9TH MAIN, 26TH CROSS, BANASHANKARI STAGE - II, BENGALURU - 560 072. REPRESENTED BY ITS DIRECTOR. 7. MANAGEMENT AND ENTREPRENEURSHIP AND PROFESSIONAL SKILLS COUNCIL, A SECTION 8 PUBLIC COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT 14, MANAGEMENT HOUSE, INSTITUTIONAL AREA, LODHI ROAD, NEW DELHI - 110 003. HAVING ITS CORPORATE OFFICE AT 20TH FLOOR, AMBA DEEP, 14, KASTURBA GANDHI MARG, NEW DELHI - 110 001. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. 8. NATIONAL COUNCIL FOR VOCATIONAL EDUCATION AND TRAINING, A REGULATORY BODY ESTABLISHED BY THE GOVERNMENT OF INDIA, THROUGH ITS MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP. HAVING ITS OFFICE AT 4TH FLOOR, KAUSHAL BHAWAN, - 4 - NC: 2024:KHC:53013 WP No. 28805 of 2024 AFRICA AVE, DIPLOMATIC ENCLAVE CHANAKYAPURI, NEW DELHI - 110 023. REPRESENTED BY ITS CHAIRPERSON. 9. MEDHAVI SKILLS UNIVERSITY, A STATE UNIVERSITY ESTABLISHED UNDER THE PROVISIONS OF THE MEDHAVI SKILLS UNIVERSITY SIKKIM ACT, 2021 RECOGNIZED BY UNIVERSITY GRANTS COMMISSION HAVING ITS OFFICE AT TOPAKHANI, LOWER CHISOPANI PO, SINGTAM BAZAR, PS SINGTAM DISTRICT, EAST SIKKIM, SIKKIM - 737 134. AND ALSO AT BERMOIK, WEST SIKKIM RATAMATEY THANGSING, BARNYAK-BARTHANG GPU, BERMOIK, WEST SIKKIM, SIKKIM - 737 113. REPRESENTED BY ITS CHANCELLOR. …RESPONDENTS (BY SRI. SHANTHI BHUSHAN, DSGI FOR R1, R2, R3 AND R5; SRI.H.R.SHOWRI, ADVOCATE FOR R4; SRI.VIKRAM HUILGOL, SENIOR ADVOCATE FOR SRI.RAKSHITH S KUNDAPURA, ADVOCATE FOR R6 AND R7; SRI.RAGHURAM CADAMBI, ADVOCATE FOR R9; R8 SERVED AND UNREPRESENTED) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT R-3 TO CONSIDER THE REPRESENTATION DATED 12.04.2024 (ANNX- M) SUBMITTED BY THE PETITIONER AND TAKE NECESSARY ACTION AGAINST R-6 IN A TIME BOUND MANNER AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 5 - NC: 2024:KHC:53013 WP No. 28805 of 2024 CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The petitioner is before this court seeking for the following reliefs: i) Direct Respondent No. 3 to consider the Representation dated 12.04.2024 (Annexure-M) submitted by the Petitioner and take necessary action against Respondent No.6 in a time bound manner; ii) Direct Respondent No.4 to take necessary action pursuant to the Communications dated 14.08.2024 (Annexures P & Q) curtailing Respondent No.6 from offering courses under the name and title of 'Post Graduate Diploma in Taxation', 'Professional Skill Qualification', 'Recognition for Prior Learning' and such others course/s being offered by it; iii) Direct Respondent No. 4 to take steps in restraining Respondent No.6 from issuing licenses for the purpose of practicing as an 'IT Practitioner', 'GST Practitioner', 'Custom Broker' and such other licenses being issued by it under the courses; iv) Direct Respondent No.5 to consider the Application dated 02.01.2024 (Annexure-L) submitted by the Petitioner and take necessary action against Respondent No.6 in a time bound manner; From enrolling fresh candidates onto the programs offered by it, hence, the need for interim relief. 2. During the pendency of the above matter, an affidavit of Sri. Sreedhara Parthasarathy, the - 6 - NC: 2024:KHC:53013 WP No. 28805 of 2024 Chairman and Director of respondent No.6 has been filed, which reads as under: \"We, Institute of Chartered Tax Practitioners India (known as ICTPI), a section 8 company incorporated under The Companies Act 2013, bearing CIN: U85100KA2020NPL131334 and having registered office at, TPI Bhavan, No.313, 26th Cross, 9th Main Road, Banashankari II Stage, Bengaluru-560070, duly authorised & represented by the board of the company, Sreedhara Parthasarathy, Son of late Parthasarathy, aged about 59 years, resident of 292/25, 34th Ward, SiriVenkata, 4th Cross Devinagar, Near Kannada Church, Ballari 583104, in the capacity of Chairman & Director, presently at Bengaluru do hereby solemnly affirm and state as under: 1. I, state that the Institute of Chartered Accountants of India has filed a Writ Petition bearing Number 28805/2024 seeking a Writ of Mandamus. 2. I, state that the Hon'ble High Court in this writ has granted time until 18.12.2024 to file an affidavit stating that this respondent would put up a disclaimer and indicate the scope of activities in the website of this respondent. 3. In view of the above the Institute of Chartered Tax Practitioners India shall; a) Publish a disclaimer on the website page https://www.ictpi.in/ stating that the Institute of Chartered Tax Practitioners India is Not affiliated to The Institute of Chartered Accountants of India'; b) Include the term 'Not affiliated with the Institute of Chartered Accountants of India' in all the course materials. c) Display in the website page https://www.ictpi.in/ stating that The Institute of Chartered Tax Practitioners India does not issue any licenses to practice as a 'Income Tax - 7 - NC: 2024:KHC:53013 WP No. 28805 of 2024 Practitioner', 'GST Practitioner' or 'Customs Broker' d) Display in the website page https://www.ictpi.in/ctprskill and also in https://www.ictpi.in/rpl that the scope of the Skill Qualification Course, Consultant: (Chartered Tax Practitioner) facilitated by the Institute of Chartered Tax Practitioners India is to enable vocational training and it does not automatically entitle the prospective student to practice or enroll as a tax practitioner except as provided in the respective statutes. The above statements are true to the best of my knowledge and belief and I, have signed this affidavit on this the 18th day of December Two Thousand and Twenty-Four (18/12/2024) at Bengaluru.\" 3. In response thereto, the petitioner had filed a memo on 19.12.2024, which reads as under: \"The Petitioner respectfully submits as under: Pursuant to the Order dated 16.12.2024, the Respondent No. 6 has filed an Affidavit dated 18.12.2024 indicating that it would publish certain disclaimers as mentioned in Para 3 of the said Affidavit. At the outset, it is seen that the Affidavit is in the name of the Respondent No. 6 Company, represented by an Authorised Signatory. It is seen from the records that no such authorisation is placed before this Hon'ble Court. This Hon'ble Court may direct an Affidavit to be filed by the competent officer, duly authorised by the Board of Directors of the Company. On perusal of the Affidavit, it is found that further clarity is necessary in this regard. In view of the same, the following may also be directed to be added to the clarificatory disclaimers proposed by Respondent No. 6. - 8 - NC: 2024:KHC:53013 WP No. 28805 of 2024 Para 3(a) Prominently display on the website page https://ictpi.in that the Institute of Tax Practitioners India is not affiliated in any manner to the Institute of Chartered Accountants of India and the activities of the Company do not deal with any aspect of accountancy or profession of chartered accountancy. Para 3(b) To include the term \"not affiliated with the Institute of Chartered Accountants of India\" in all the course material, academic material (online and offline) and publicity material, apart from the disclaimer published on the website. Para 3(c) Display in the website page https://ictpi.in as well as all brochures, promotional and academic material (both online and offline) that the Institute of Chartered Tax Practitioners India does not issue any licenses to practice as an Income Tax Practitioner, GST Practitioner or a Customs Broker and that the courses offered by the Institute of Chartered Tax Practitioners India is not an essential prerequisite for obtaining any licenses from the respective departments/authorities. It is submitted that this Hon'ble Court maybe pleased to direct the Respondent No. 6 to carry out the aforementioned disclaimers in addition to the disclaimers as mentioned in the Affidavit dated 18.12.2024 filed by Respondent No. 6. Apart from the same, it is submitted that this Hon'ble Court maybe pleased to also permit the Petitioner to publish these aspects, in a manner found appropriate, at its own cost. Wherefore, it is respectfully prayed that this Hon'ble Court maybe pleased to receive the present memo on record and pass appropriate orders, in the interest of justice. 4. In further response to the said memo, the said Sridhara Parthasarathy, the Chairman and Director of - 9 - NC: 2024:KHC:53013 WP No. 28805 of 2024 respondent No.6, has filed a further affidavit, which reads as under: \"I, Sreedhara Parthasarathy, son of late Parthasarathy, aged about 59 years, Chairman & Director of Institute of Chartered Tax Practitioners India, TPI Bhavan, No.313, 26th Cross, 9th Main Road, Banashankari II Stage, Bengaluru-560070 do hereby solemnly affirm and state as under: 1. I state that the Institute of Chartered Accountants of India has filed a Writ Petition bearing Number 28805/2024 seeking a Writ of Mandamus. 2. I state that the Hon'ble High Court in this writ has granted time until 18.12.2024 to file an affidavit stating that this respondent would put up a disclaimer and indicate the scope of activities in the website of this respondent. 3. In view of the aforementioned direction we had filed an affidavit dated 18.12.2024 after serving the said affidavit to the Petitioner. 4. In response to the said affidavit, the Petitioner intends to file a memo dated 19.12.2024 before this Hon'ble Court which was served to my counsel at 10:17 AM on 19.12.2024 by email. In the memo dated 19.12.2024 the Petitioner has sought for few additional clarifications which is to be made in the affidavit dated 18.12.2024. 5. In view of the clarifications sought for by the Petitioner in their memo dated 19.12.2024 the Institute of Chartered Tax Practitioners India shall; a) Prominently display on their website page https://ictpi.in that the Institute of Chartered Tax Practitioners India is not affiliated in any manner to the https://ictpi.in that the Institute of Chartered Accountants of India and the activities of the company do not deal - 10 - NC: 2024:KHC:53013 WP No. 28805 of 2024 with any aspect in relation to the profession regulated by the Petitioner Institute; b) Include the term 'Not affiliated with the Institute of Chartered Accountants of India' in all the course material, academic material (online and offline) and publicity material apart from the disclaimer published on the website; c) Display in the website page https://ictpi.in as well as all brochures, promotional and academic material (both online and offline) that the Institute of Chartered Tax Practitioners India does not issue any licenses to practice as an Income Tax Practitioner, GST Practitioner or a Customs Broker and that the courses offered by The Institute of Chartered Tax Practitioners India is not an essential prerequisite for obtaining any licenses from the respective departments/authorities; d) Display in the website and in the course materials that the scope of the course offered by the Institute of Chartered Tax Practitioner is to enable vocational training and does not entitle the prospective student to practice or enroll as a tax practitioner except as provided in the respective statutes. 6. Apart from the above clarifications sought by the Petitioner they have also sought for proof of my authorization. I state that I have filed my authorization, i.e., authorization letter dated 02.12.2024 along with the vakalatnama. However, a copy of the board resolution dated 02.12.2024 filed before the Hon'ble Court is also produced along with this Affidavit. The above statements are true to the best of my knowledge and belief and I have signed this affidavit on this the 19th day of December Two Thousand and Twenty- Four (19/12/2024) at Bengaluru.\" - 11 - NC: 2024:KHC:53013 WP No. 28805 of 2024 5. The memo filed by the petitioner being additional grievance of the petitioner as regard the affidavit filed by respondent No.6 on 18.12.2024, the further affidavit which has been filed, answers those grievances and the petitioner has no objection for the said undertakings dated 18.12.2024 and 19.12.2024, vide the aforesaid affidavits, to be taken on record and for the above petition to be disposed of in terms of the said affidavits. 6. In view of the above, prayer No.1 does not survive for consideration, firstly, for the reason that the ninth respondent's arrangement with respondent No.6 to provide curriculum for Post Graduate Diploma of Taxation, has been terminated; secondly, for the reason that there are applicable statutes under which a person needs to register to be entitled to be a Tax Practitioner. Those statutes already being applicable and holding the field, the question of any further clarification to be issued by respondent No.3, would not arise. - 12 - NC: 2024:KHC:53013 WP No. 28805 of 2024 7. In view of the aforesaid affidavits, prayers 2 and 3 do not survive for consideration. 8. Insofar as prayer No.4 is concerned, the submission of learned counsel for respondent No.5 is that if the petitioner were to submit a physical form in Form RD-1 and make payment of necessary fees, the same would be considered by respondent No.5. 9. On enquiry as to why in this day and age, a physical form is to be submitted, learned counsel for respondent No.5 submitted that it is only a company registered with the Registrar of Companies who can submit the online form under the MCA 21 portal and an entity or a person who is not registered as a company, cannot file E-Form in RD-1. 10. On enquiry as to why there is such a differentiation between a company and a non-company, he submits that the portal does not provide for a non company to make an online application. I am unable to understand and/or appreciate the said discrimination between a company and a non-company. When a - 13 - NC: 2024:KHC:53013 WP No. 28805 of 2024 process and procedure is provided for submitting an application online to a company, a non-company or an individual should also be permitted to file an application in a similar manner. 11. In that view of the matter, respondent No.5 is directed to upgrade and/or carry out necessary modifications to its portal so that the services which are available to a company are available to even a non-company or an individual, within a period of six weeks from today. 12. A compliance report in that regard to be filed by 30.01.2025. 13. Insofar as the petitioner is concerned, learned senior counsel for the petitioner submits that a physical form in RD-1 has been submitted by the petitioner and payments made in relation thereto. Respondent No.5 is directed to consider the application dated 02.01.2024, submitted by the petitioner physically. 14. Learned counsel for the respondent No.5 submits that a show-cause notice has already been issued to - 14 - NC: 2024:KHC:53013 WP No. 28805 of 2024 respondent No.6. If that be so, respondent No.6 is permitted to file his objections to the said show- cause notice, which objection shall be submitted on or before 24.01.2025. 15. The petitioner and respondent No.6 are directed to appear before respondent No.5 - Authority on 29.01.2025, at 10.30 a.m., without requirement of any further notice. Respondent No.5 is directed to dispose of the said application within a period of eight weeks thereafter. 16. Accordingly, the writ petition is disposed of. 17. In view of disposal of the writ petition, pending I.As., stands disposed of. SD/- (SURAJ GOVINDARAJ) JUDGE RD "