Appendix No-23 – The Chartered Accountants Act, 1949

Published in Part III Section 4 of the Gazette of India dated 20th March, 1971

2nd March, 1971

No. 1-CA(44)/71. – In exercise of the powers conferred by clause (ii) of Part II of the Second Schedule to the Chartered Accountants Act, 1949, the Council of the Institute of Chartered Accountants of India species that a member of the Institute shall be deemed to be guilty of professional misconduct, if he expresses his opinion on financial statement of any business or enterprise in which one or more persons who are his “relatives ”within the meaning of Section 6 of the Companies Act, 1956 have either by themselves or in conjunction with such member a substantial interest unless he discloses the interest also in his report.

Explanation – For this purpose the expression “substantial interest ”shall have the same meaning as is assigned thereto under Explanation 3 of Section 13 of the Income-tax Act, 1961.

C Balakrishnan

Secretary

[The Notification given in Appendix No. (24) was in operation until issuance of Council General Guidelines, 2008 – No. 1-CA(7)/02/2008 dated 8th August, 2008, given at Appendix No. (34)]

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