Section 25. Companies not to engage in accountancy

CHAPTER VII PENALTIES — 24. Penalty for falsely claiming to be a member, etc.— Any person who, (i) not being a member of the Institute, — - (a) represents that he is a member of the Institute; or - (b) uses the designation Chartered Accountant, or (ii) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practices as a chartered accountants, shall be punishable on first conviction with fine which may extend to[2] [one lakh rupees], and on any subsequent conviction with imprisonment which may extend to six months or with fine which may extend to[3] [five lakh rupees], or with both. 4 [24A. Penalty for using name of the Council, awarding degrees of chartered accountancy, etc.— (1) Save as otherwise provided in this Act, no person shall — (i) use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it as to deceive or as is likely to deceive the public; 1. Subs. by Act 15 of 1959, s. 20, for "The Council may constitute such Regional Councils" (w.e.f. 1-7-1959). 2. Subs. by Act 12 of 2022, s. 28, for "one thousand rupees" (w.e.f. 10-5-2022). 3. Subs. by s. 28, ibid ., for "five thousand rupees" (w.e.f. 10-5-2022). 4. Ins. by Act 15 of 1959, s. 21 (w.e.f. 1-7-1959). (ii) award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence similar to that of a member of the Institute; or (iii) seek to regulate in any manner whatsoever the profession of chartered accountants. (2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him,[1] [be punishable with imprisonment which may extend to six months, or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both on first conviction] and on any subsequent conviction with imprisonment which may extend to[2] [one year, or with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees], or with both. 3* * * * *] 25. Companies not to engage in accountancy.— (1) No company, whether incorporated in India or elsewhere, shall practice as chartered accountants. 4[ Explanation .—For the removal of doubts, it is hereby declared that the "company" shall include any limited liability partnership which has company as its partner for the purposes of this section.] (2) If any company contravenes the provisions of sub-section (1), then, without prejudice to any other proceedings which may be taken against the company, every director, manager, secretary and any other officer thereof who is knowingly a party to such contravention shall be punishable with fine[5] [which shall not be less than two lakh rupees but] which may extend on first conviction to[6] [ten lakh rupees], and on any subsequent conviction[7] [with fine which shall not be less than four lakh rupees but which may extend to twenty lakh rupees].