On ICAI's Plea, Karnataka HC Restrains Company From Certifying Individuals As "Fit To Practise" Income Tax, GST, Custom Brokerage, Etc

The Karnataka High Court has by way of an interim order restrained a private company from offering courses under the name and title of 'Post Graduate Diploma in Taxation Professional Skill Qualification.'

A single judge bench of Justice Suraj Govindaraj passed the order while hearing a petition filed by the Institute of Chartered Accountants of India.

The court restrained M/s Institute of Chartered Tax Practitioners India, from issuing any licence to any person authorising such a person or certifying that person to be fit to practise as an Income Tax practitioner, GST practitioner, Custom broker or the like.

It also restrained the company from enrolling any person or body under the category of affiliates, associates, fellows, honorary and academic for the purpose of offering any courses relating to Tax Law and related courses or for issuance of any licences, certificates or the like till the next date of hearing, December 9.

The petition filed by the Institute states that in recent years, the problem of issuance of fake courses degrees is rampant particularly since there is significant lack of accountability and transparency in the education system, owing to the lack of due diligence followed by the regulatory authorities.

Petitioner said the program titled 'Post Graduate Diploma in Taxation' that confers the title of a 'Chartered Tax Practitioner' offered by the Company is allegedly offered by a Medhavi Skills University and is recognized under the UGC Act, 1956. However, the Company website refers to this course as a degree being conferred on the candidate.

“Such assertions of offering courses under false pretences is illegal in nature. Apart, referring to a diploma course as a degree is an intentional method adopted by Respondent No. 6 to confuse the candidates and the general public about the true nature and authenticity of the education program. The company has created fictitious courses to offer to the general public without any legal recognition,” the plea said.

The plea also claims that course offered by the Company are in contravention to Section 15A of the Chartered Accounts Act, 1949. The provision imposes a restriction on Universities or bodies in offering courses in the fields of education dealt with by the petitioner Institute.

Moreover, the word 'Chartered' being used in the name of the alleged degree i.e., 'Chartered Tax Practitioner' being conferred by the Company and use of the word 'Chartered' in its own name, leads to a misleading connotation that the Company is in fact a statutory body established under a statute or a legislation and that the degrees awarded to the candidates are in fact legitimate arising out of that statute which is not the case, the plea states.

It is thus prayed that the Centre be directed to take necessary action against the Company in a time bound manner.

Case Title: The Institute of Chartered Accountants of India AND Union of India & Others

Appearance: Senior Advocate Sriranga S, for Advocate Sumana Nagand for Petitioner.

Advocate Aditya Singh for R1.