Chartered Accountants Act, 1949
[As
amended by Chartered Accountants (Amendment) Act, 2006]
PRELIMINARY
Short title, extent and
commencement.
1. (1)This Act may be called the Chartered
Accountants Act, 1949.
(2) It extends to the whole of
(3) It shall come into force on such date as
the Central Government may, by notification in the Official Gazette, appoint in
this behalf.
2. (1) In this Act, unless there is anything
repugnant in the subject or context,—
(a) “associate” means an associate member of
the Institute;
[(aa) “Authority” means the Appellate Authority constituted under
section 22A;
(aaa) “Board” means the Quality Review Board constituted under section
28A;]
(b) “chartered
accountant” means a person who is a member of the Institute;
(c) “Council”
means the Council of the Institute;
(d) “holder of a restricted certificate”
means a person holding a permanent or temporary restricted certificate granted
by a State Government under the Restricted Certificates Rules, 1932;
(e) “Institute” means the Institute of
Chartered Accountants of India constituted under this Act;
[(ea) “notification”
means a notification published in the Official Gazette;]
(f) “prescribed”
means prescribed by regulations made under this Act;
(g) “Register”
means the Register of Members maintained under this Act;
(h) “registered accountant” means any person
who has been enrolled on the Register of Accountants maintained by the Central
Government under the Auditors’ Certificates Rules, 1932;
[(ha) “specified” means
specified by rules made by the Central Government under this Act;
(hb) “Tribunal” means a Tribunal established under sub-section (1)
of section 10B;]
(i) “year”
means the period commencing on the 1st day of April of any year and ending on
the 31st day of March of the succeeding year.
(2) A member of the Institute shall be deemed, “to be in
practice”, when individually or in partnership with chartered accountants in
practice, he, in consideration of remuneration received or to be received,—
(i) engages
himself in the practice of accountancy; or
(ii) offers to perform or performs services
involving the auditing or verification of financial transactions, books,
accounts, or records or the preparation, verification or certification of
financial accounting and related statements or holds himself out to the public
as an accountant; or
(iii) renders professional services or
assistance in or about matters of principle or detail relating to accounting
procedure or the recording, presentation or certification of financial facts or
data; or
(iv) renders such other services as, in the
opinion of the Council, are or may be rendered by a chartered accountant in
practice,
and the words “to be in practice” with their grammatical variations and cognate expressions shall be construed accordingly.
Explanation: An associate or a fellow of the
Institute who is a salaried employee of a chartered accountant in practice or a
firm of such chartered accountants shall, notwithstanding such employment, be
deemed to be in practice for the limited purpose of the training of articled
[assistants].
THE
ACCOUNTANTS
Incorporation of the Institute.
3. (1) All persons whose names are entered in the Register at the
commencement of this Act and all persons who may hereafter have their names
entered in the Register under the provisions of this Act, so long as they
continue to have their names borne on the said Register, are hereby constituted
a body corporate by the name of the Institute of Chartered Accountants of
India, and all such persons shall be known as members of the Institute.
(2) The Institute shall have perpetual succession and a common
seal and shall have power to acquire, hold and dispose of property, both
movable and immovable, and shall by its name sue or be sued.
Entry of names
in the Register.
4. (1) Any of the following persons shall be entitled to have
his name entered in the Register, namely:—
(i) any
person who is a registered accountant or a holder of a restricted certificate
at the commencement of this Act;
(ii) any person who has passed such
examination and completed such training as may be prescribed for members of the
Institute;
(iii) any person who has passed the
examination for the Government Diploma in Accountancy or an examination recognised as equivalent thereto by the rules for the award
of the Government Diploma in Accountancy before the commencement of this Act,
and who, although not duly qualified to be registered as an accountant under
the Auditors’ Certificates Rules, 1932, fulfils such conditions as the Central
Government may specify in this behalf;
(iv) any person who, at the commencement
of this Act, is engaged in the practice of accountancy in any Part B State and
who, although not possessing the requisite qualifications to be registered as
an accountant under the Auditors’ Certificates Rules, 1932, fulfils such
conditions as the Central Government may specify in this behalf;
(v) any person who has passed such other
examination and completed such other training without
Provided
that in the case of any person who is not
permanently residing in
(vi) any person domiciled in India, who at
the commencement of this Act is studying for any foreign examination and is at
the same time undergoing training, whether within or without India, or, who,
having passed such foreign examination, is at the commencement of this Act
undergoing training, whether within or without India:
Provided that any such examination or training was recognised
before the commencement of this Act for the purpose of conferring the right to
be registered as an accountant under the Auditor’s Certificates Rules, 1932,
and provided further that such person passes the examination or completes the
training within five years after the commencement of this Act.
(2) Every person belonging to the class mentioned in clause (i) of sub-section (1) shall have his name entered in the Register without the payment of any entrance fee.
[(3) Every
person belonging to any of the classes mentioned in clauses (ii), (iii), (iv),
(v) and (vi) of sub-section (1) shall have his name entered in the Register on
application being made and granted in the prescribed manner and on payment of
such fees, as may be determined, by notification, by the Council, which shall
not exceed rupees three thousand:
Provided that the Council may, with the prior approval of the Central
Government, determine the fee exceeding rupees three thousand, which shall not
in any case exceed rupees six thousand.]
(4) The Central Government shall take such steps as may be
necessary for the purpose of having the names of all persons belonging to the
class mentioned in clause (i) of sub-section (1)
entered in the Register.
5. (1) The members of the Institute shall be divided into two
classes designated respectively as associates and fellows.
(2) Any person shall, on his name, being entered in the Register,
be deemed to have become an associate member of the Institute and be entitled
to use the letters A.C.A. after his name to indicate that he is an associate
member of the
[(3) A
member, being an associate who has been in continuous practice in India for at
least five years, whether before or after the commencement of this Act, or
whether partly before and partly after the commencement of this Act, and a
member who has been an associate for a continuous period of not less than five
years and who possesses such qualifications as the Council may prescribe with a
view to ensuring that he has experience equivalent to the experience normally
acquired as a result of continuous practice for a period of five years as a
chartered accountant shall, on payment of such fees, as may be determined, by
notification, by the Council, which shall not exceed rupees five thousand and
on application made and granted in the prescribed manner, be entered in the
Register as a fellow of the Institute and shall be entitled to use the letters
F. C. A. after his name to indicate that he is a fellow of the Institute of
Chartered Accountants:
Provided that the Council may with the prior approval of the Central Government,
determine the fee exceeding rupees five thousand, which shall not in any case
exceed rupees ten thousand.]
6. (1) No member of the Institute shall be
entitled to practise whether in
[(2) Every
such member shall pay such annual fee for his certificate as may be determined,
by notification, by the Council, which shall not exceed rupees three thousand,
and such fee shall be payable on or before the 1st day of April in each year:
Provided that the Council may with the prior approval of the Central Government,
determine the fee exceeding rupees three thousand, which shall not in any case
exceed rupees six thousand.]
[(3) The
certificate of practice obtained under sub-section (1) may be cancelled by the
Council under such circumstances as may be prescribed.]
Members to be known as Chartered
Accountants.
7. Every member of the
Institute in practice shall, and any other member may, use the designation of a
chartered accountant and no member using such designation shall use any other
description, whether in addition thereto or in substitution therefor
:
Provided that nothing contained in this section shall be deemed to prohibit any
such person from adding any other description or letters to his name, if
entitled thereto, to indicate membership of such other Institute of
Accountancy, whether in India or elsewhere, as may be recognised
in this behalf by the Council, or any other qualification that he may possess,
or to prohibit a firm, all the partners of which are members of the Institute
and in practice, from being known by its firm name as Chartered Accountants.
8. Notwithstanding anything
contained in section 4, a person shall not be entitled to have his name entered
in or borne on the Register if he—
(i) has not
attained the age of twenty-one years at the time of his application for the
entry of his name in the Register; or
(ii) is of
unsound mind and stands so adjudged by any competent court; or
(iii) is an undischarged insolvent; or
(iv) being a discharged insolvent, has not
obtained from the Court a certificate stating that his insolvency was caused by
misfortune without any misconduct on his part; or
(v) has been convicted by a competent Court
whether within or without India, of an offence involving moral turpitude and
punishable with transportation or imprisonment or of an offence, not of a
technical nature, committed by him in his professional capacity unless in
respect of the offence committed he has either been granted a pardon or, on an
application made by him in this behalf, the Central Government has, by an order
in writing, removed the disability; or
(vi) has been removed from membership of
the Institute on being found on inquiry to have been guilty of professional or
other misconduct :
Provided that a person who has been removed from membership for a
specified period, shall not be entitled to have his name entered in the
Register until the expiry of such period.
CHAPTER III
COUNCIL
OF THE INSTITUTE
Constitution of the Council of
the Institute.
9. (1) There shall be a Council of the Institute
for the management of the affairs of the Institute and for discharging the
functions assigned to it under this Act.
[(2) The
Council shall be composed of the following persons, namely:—
(a) not more than thirty-two persons elected by the members of
the Institute from amongst the fellows of the Institute chosen in such manner
and from such regional constituencies as may be specified:
Provided
that a fellow of the Institute, who has
been found guilty of any professional or other misconduct and whose name is
removed from the Register or has been awarded penalty of fine, shall not be
eligible to contest the election,—
(i) in case of misconduct falling under the
First Schedule of this Act, for a period of three years;
(ii) in case of misconduct falling under the
Second Schedule of this Act, for a period of six years,
from
the completion of the period of removal of name from the Register or payment of
fine, as the case may be;
(b) not more than eight persons to be
nominated in the specified manner, by the Central Government.]
[(3) No
person holding a post under the Central Government or a State Government shall
be eligible for election to the Council under clause (a) of sub-section (2).
(4) No person who has been auditor of the Institute shall be
eligible for election to the Council under clause (a) of sub-section (2), for a
period of three years after he ceases to be an auditor.]
[Re-election or re-nomination to
Council.
10. A member of the
Council, elected or nominated under sub-section (2) of section 9, shall be
eligible for re-election or, as the case may be, re-nomination:
Provided that no member shall hold the office for more
than three consecutive terms:
Provided further that a member of the Council, who is or has
been elected as President under sub-section (1) of section 12, shall not be
eligible for election or nomination as a member of the Council.]
[Settlement of dispute regarding
election.
10A. In
case of any dispute regarding any election under clause (a) of sub-section (2)
of section 9, the aggrieved person may make an application within thirty days
from the date of declaration of the result of election to the Secretary of the
Institute, who shall forward the same to the Central Government.
10B. (1) On receipt of any application under
section 10A, the Central Government shall, by notification, establish a Tribunal
consisting of a Presiding Officer and two other Members to decide such dispute
and the decision of such Tribunal shall be final.
(2) A person shall not be qualified for appointment,—
(a) as a Presiding Officer of the Tribunal
unless he has been a member of the Indian Legal Service and has held a post in
Grade I of the service for at least three years;
(b) as a Member unless he has been a member
of the Council for at least one full term and who is not a sitting member of
the Council or who has not been a candidate in the election under dispute; or
(c) as a Member unless he holds the post of
a Joint Secretary to the Government of India or any other post under the
Central Government carrying a scale of pay which is not less than that of a
Joint Secretary to the Government of India.
(3) The terms and conditions of service of the Presiding Officer
and Members of the Tribunal, their place of meetings and allowances shall be
such as may be specified.
(4) The
expenses of the Tribunal shall be borne by the Council.]
Nomination in default of
election or nomination.
11. If any body of persons referred to in section
9 fails to elect any of the members of the Council which it is empowered under
that section to elect, the Central Government may nominate a person duly
qualified to fill the vacancy, and any person so nominated shall be deemed to
be a member of the Council as if he had been duly elected.
12. (1) The
Council at its first meeting shall elect two of its members to be respectively
the President and the Vice-President thereof, and so often as the office of the
President or the Vice-President becomes vacant the Council shall choose another
person to be the President or the Vice-President, as the case may be :
Provided that on the first constitution of the Council a member of the Council
nominated in this behalf by the Central Government shall discharge the
functions of the President, until such time as a President is elected under the
provisions of this sub-section.
(2) The President shall be the Chief Executive Authority of the
Council.
(3) The President or the Vice-President shall hold office for a
period of one year from the date on which he is chosen but so as not to extend
beyond his term of office as a member of the Council, and, subject to his being
a member of the Council at the relevant time, he shall be eligible for
re-election [under sub-section (1)].
(4) On the expiration of the duration of the Council, the
President [and the Vice-President] of the Council at the time of
such expiration shall continue to hold office and discharge such administrative
and other duties as may be prescribed until such time as a new President [and
the Vice-President] shall have been elected and shall have taken over
charge of [their] duties.
Resignation of membership and
casual vacancies.
13. (1) Any
member of the Council may at any time resign his membership by writing under
his hand addressed to the President, and the seat of such member shall become vacant
when such resignation is notified in the Official Gazette.
(2) A member of the Council shall be deemed to have vacated his
seat if he is declared by the Council to have been absent without sufficient
excuse from three consecutive meetings of the Council [or he has been
found guilty of any professional or other misconduct and awarded penalty of
fine,] or if his name is, for any cause, removed from the Register under
the provisions of section 20.
(3) A casual vacancy in the Council shall be filled by fresh
election from the constituency concerned or by nomination by the Central
Government, as the case may be, and the person elected or nominated to fill the
vacancy shall hold office until the dissolution of the Council :
Provided that no election shall be held to fill a casual vacancy occurring
within [one year]
prior to the date of the expiration of the duration of the Council, but such a
vacancy may be filled by nomination by the Central Government after
consultation with the President of the Council.
(4) No act done by the Council shall be called in question on the
ground merely of the existence of any vacancy in, or defect in the constitution
of, the Council.
Duration and dissolution of
Council.
14. (1) The
duration of any Council constituted under this Act shall be three years from
the date of its first meeting, on the expiry of which it shall stand dissolved
and a new Council constituted in accordance with the provisions of this Act.
(2) Notwithstanding the expiration of the duration of a Council
(hereinafter referred to as the former Council), the former Council shall
continue to exercise its functions until a new Council is constituted in
accordance with the provisions of this Act, and on such constitution, the
former Council shall stand dissolved.
15. (1) The Institute shall function under the overall control,
guidance and supervision of the Council and the duty of carrying out the
provisions of this Act shall be vested in the Council.
(2) In particular, and without prejudice to the generality of the
foregoing powers, the duties of the Council shall include—
(a) to
approve academic courses and their contents;
(b) the
examination of candidates for enrolment and the prescribing of fees therefor;
(c) the
regulation of the engagement and training of articled and audit assistants;
(d) the
prescribing of qualifications for entry in the Register;
(e) the
recognition of foreign qualifications and training for the purposes of
enrolment;
(f) the
granting or refusal of certificates of practice under this Act;
(g) the maintenance and publication of a
Register of persons qualified to practice as chartered accountants;
(h) the levy
and collection of fees from members, examinees and other persons;
(i) subject to
the orders of the appropriate authorities under the Act, the removal of names
from the Register and the restoration to the Register of names which have been
removed;
(j) the regulation and maintenance of the
status and standard of professional qualifications of members of the Institute;
(k) the carrying out, by granting financial
assistance to persons other than members of the Council or in any other manner,
of research in accountancy;
(l) the maintenance of a library and
publication of books and periodicals relating to accountancy;
(m) to enable functioning of the Director
(Discipline), the Board of Discipline, the Disciplinary Committee and the
Appellate Authority constituted under the provisions of this Act;
(n) to enable
functioning of the Quality Review Board;
(o) consideration of the recommendations of
the Quality Review Board made under clause (a) of section 28B and the details
of action taken thereon in its annual report; and
(p) to ensure the functioning of the
Institute in accordance with the provisions of this Act and in performance of
other statutory duties as may be entrusted to the Institute from time to time.]
[Imparting education by
Universities and other bodies.
15A. (1) Subject to the provisions of this Act,
any University established by law or any body affiliated to the Institute, may
impart education on the subjects covered by the academic courses of the
Institute.
(2) The Universities or bodies referred to in sub-section (1)
shall, while awarding degree, diploma or certificate or bestowing any
designation, ensure that the award or designation do not resemble or is not
identical to one awarded by the Institute.
(3) Nothing contained in this section shall enable a University or
a body to adopt a name or nomenclature which is in any way similar to that of
the Institute.]
[Officers and employees, salary, allowances, etc.
16. (1) For the efficient performance of its
duties, the Council shall—
(a) appoint
a Secretary to perform such duties as may be prescribed;
(b) appoint a Director (Discipline) to
perform such functions as are assigned to him under this Act and the rules and
regulations framed thereunder.
(2)
The Council may also—
(a) appoint
such other officers and employees as it considers necessary;
(b) require and take from the Secretary or
from any other officer or employee such security for the due performance of his
duties, as the Council considers necessary;
(c) prescribe the salaries, fees, allowances
of the officers and employees and their terms and conditions of service;
(d) with the previous sanction of the
Central Government, fix the allowances of the President, Vice-President and
other members of the Council and members of its Committees.
(3)
The Secretary of the Council shall
be entitled to participate in the meetings of the Council but shall not be
entitled to vote thereat.]
17. (1) The Council shall constitute from amongst
its members the following Standing Committees, namely :—
(i) an Executive Committee,
(ii) an
Examination Committee, and
(iii) a [Finance]
Committee.
[(2) The Council
may also form such other committees from amongst its members as it consider
necessary for the purpose of carrying out the provisions of this Act, and any
Committee so formed may, with the sanction of the Council, co-opt such other
members of the Institute not exceeding one-third of the members of the
committee as it thinks fit, and any member so co-opted shall be entitled to
exercise all the rights of a member of the committee.
(3)
Each of the Standing Committees
shall consist of the President and the Vice-President ex officio, and minimum
of three and maximum of five members to be elected by the Council from amongst
its members.]
(4) The President and the Vice-President of the Council shall be
the Chairman and Vice-Chairman respectively of each of the Standing Committees.
(5) Every member of the Standing Committee other than the Chairman
and the Vice-Chairman shall hold office for one year from the date of his
election, but subject to being a member of the Council, he shall be eligible
for re-election.
(6) The Standing Committee shall exercise such functions and be
subject to such conditions in the exercise thereof as may be prescribed.
18. (1) There
shall be established a fund under the management and control of the Council
into which shall be paid all moneys received by the Council and out of which
shall be met all expenses and liabilities properly incurred by the Council.
(2) The Council may invest any money for the time being standing
to the credit of the fund in any Government security or in any other security
approved by the Central Government.
[(3) The Council
shall keep proper accounts of the fund distinguishing capital from revenue in
the manner prescribed.
(4)
The Council shall prepare in the
manner prescribed and approve, prior to the start of the financial year, an
annual financial statement (the budget) indicating all its anticipated revenues
as well as all proposed expenditures for the forthcoming year.
(5)
The annual accounts of the Council
shall be prepared in such manner as may be prescribed and be subject to audit
by a chartered accountant in practice to be appointed annually by the Council:
Provided that no member of the Council or a person who has been a
member of the Council during the last four years or a person who is in
partnership with such member shall be eligible for appointment as an auditor
under this sub-section:
Provided further that, in the event it is brought to the notice of the
Council that the accounts of the Council do not represent a true and fair view
of its finances, then, the Council may itself cause a special audit to be
conducted:
Provided also that, if such information, that the accounts of the Council
do not represent a true and fair view of its finances, is sent to the Council
by the Central Government, then, the Council may, wherever appropriate cause a
special audit or take such other action as it considers necessary and shall
furnish an action taken report on it to the Central Government.]
[(5A) As soon as may
be practicable at the end of each year, the Council shall circulate the audited
accounts to its members at least fifteen days in advance and consider and
approve these accounts in a special meeting convened for the purpose.
(5B)
The Council shall cause to be
published in the Gazette of India not later than the 30th day of September of
the year next following, a copy of the audited accounts and the Report of the
Council for that year duly approved by the Council and copies of the said
accounts and Report shall be forwarded to the Central Government and to all the
members of the Institute.]
(6) The Council may borrow from a scheduled bank, as defined in
the Reserve Bank of India Act, 1934 (2 of 1934) or from the Central Government—
(a) any money required for meeting its
liabilities on capital account on the security of the fund or on the security
of any other assets for the time being belonging to it, or
(b) for the purpose of meeting current
liabilities pending the receipt of income by way of temporary loan or
overdraft.
REGISTER
OF MEMBERS
19. (1) The
Council shall maintain in the prescribed manner a Register of the Members of
the Institute.
(2) The Register shall include the following particulars about
every member of the Institute, namely,—
(a) his
full name, date of birth, domicile, residential and professional addresses;
(b) the
date on which his name is entered in the Register;
(c) his
qualifications;
(d) whether
he holds a certificate of practice; and
(e) any
other particulars which may be prescribed.
(3) The Council shall cause to be published in such manner as may
be prescribed, a list of members of the Institute as on the 1st day of April of
each year, and shall, if requested to do so by any such member, send to him a
copy of such list [on payment of such amount as may be prescribed].
[(4) Every member
of the Institute shall, on his name being entered in the Register, pay such
annual membership fee as may be determined, by notification, by the Council,
which shall not exceed rupees five thousand:
Provided that the Council may with the prior approval of the Central
Government, determine the fee exceeding rupees five thousand, which shall not
in any case exceed rupees ten thousand.]
20. (1) The
Council may remove from the Register the name of any member of the Institute—
(a) who is
dead; or
(b) from whom
a request has been received to that effect; or
(c) who has
not paid any prescribed fee required to be paid by him; or
(d) who is found to have been subject at the
time when his name was entered in the Register, or who at any time thereafter
has become subject, to any of the disabilities mentioned in section 8, or who
for any other reason has ceased to be entitled to have his name borne on the
Register.
(2) The Council shall remove from the Register the name of any
member in respect of whom an order has been passed under this Act removing him
from membership of the Institute.
[(3) If the name of
any member has been removed from the Register under clause (c) of sub-section
(1), on receipt of an application, his name may be entered again in the
Register on payment of the arrears of annual fee and entrance fee along with
such additional fee, as may be determined, by notification, by the Council
which shall not exceed rupees two thousand:
Provided that the Council may with the prior approval of the Central
Government, determine the fee exceeding rupees two thousand, which shall not in
any case exceed rupees four thousand.]
MISCONDUCT
21. (1) The Council shall, by notification, establish
a Disciplinary Directorate headed by an officer of the Institute designated as
Director (Discipline) and such other employees for making investigations in
respect of any information or complaint received by it.
(2)
On receipt of any information or
complaint alongwith the prescribed fee, the Director
(Discipline) shall arrive at a prima facie opinion on the occurrence of the
alleged misconduct.
(3) Where the Director (Discipline) is of
the opinion that a member is guilty of any professional or other misconduct
mentioned in the First Schedule, he shall place the matter before the Board of
Discipline and where the Director (Discipline) is of the opinion that a member
is guilty of any professional or other misconduct mentioned in the Second
Schedule or in both the Schedules, he shall place the matter before the
Disciplinary Committee.
(4)
In order to make investigations
under the provisions of this Act, the Disciplinary Directorate shall follow
such procedure as may be specified.
(5)
Where a complainant withdraws the
complaint, the Director (Discipline) shall place such withdrawal before the
Board of Discipline or, as the case may be, the Disciplinary Committee, and the
said Board or Committee may, if it is of the view that the circumstances so
warrant, permit the withdrawal at any stage.]
21A. (1) The Council shall constitute a Board of
Discipline consisting of—
(a) a person with experience in law and
having knowledge of disciplinary matters and the profession, to be its Presiding
Officer;
(b) two members one of whom shall be a
member of the Council elected by the Council and the other member shall be
nominated by the Central Government from amongst the persons of eminence having
experience in the field of law, economics, business, finance or accountancy;
(c) the
Director (Discipline) shall function as the Secretary of the Board.
(2)
The Board of Discipline shall
follow summary disposal procedure in dealing with all cases before it.
(3)
Where the Board of Discipline is of
the opinion that a member is guilty of a professional or other misconduct
mentioned in the First Schedule, it shall afford to the member an opportunity
of being heard before making any order against him and may thereafter take any
one or more of the following actions, namely: —
(a) reprimand
the member;
(b) remove
the name of the member from the Register up to a period of three months;
(c) impose
such fine as it may think fit, which may extend to rupees one lakh.
(4)
The Director (Discipline) shall
submit before the Board of Discipline all information and complaints where he
is of the opinion that there is no prima
facie case and the Board of Discipline may, if it agrees with the opinion of
the Director (Discipline), close the matter or in case of disagreement, may
advise the Director (Discipline) to further investigate the matter.
21B. (1) The Council shall constitute a
Disciplinary Committee consisting of the President or the Vice-President of the
Council as the Presiding Officer and two members to be elected from amongst the
members of the Council and two members to be nominated by the Central
Government from amongst the persons of eminence having experience in the field
of law, economics, business, finance or accountancy:
Provided that the Council may constitute more Disciplinary
Committees as and when it considers necessary.
(2)
The Disciplinary Committee, while
considering the cases placed before it shall follow such procedure as may be
specified.
(3)
Where the Disciplinary Committee is
of the opinion that a member is guilty of a professional or other misconduct
mentioned in the Second Schedule or both the First Schedule and the Second
Schedule, it shall afford to the member an opportunity of being heard before
making any order against him and may thereafter take any one or more of the
following actions, namely: —
(a) reprimand
the member;
(b) remove the name of the member from the
Register permanently or for such period, as it thinks fit;
(c) impose
such fine as it may think fit, which may extend to rupees five lakhs.
(4)
The allowances payable to the
members nominated by the Central Government shall be such as may be specified.
21C. For
the purposes of an inquiry under the provisions of this Act, the Authority, the
Disciplinary Committee, Board of Discipline and the Director (Discipline) shall
have the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), in respect of the following matters, namely: —
(a) summoning and enforcing the attendance
of any person and examining him on oath;
(b) the
discovery and production of any document; and
(c) receiving
evidence on affidavit.
Explanation.—For the
purposes of sections 21, 21A, 21B, 21C and 22, “member of the Institute”
includes a person who was a member of the Institute on the date of the alleged misconduct
although he has ceased to be a member of the Institute at the time of the
inquiry.
21D. All complaints
pending before the Council or any inquiry initiated by the Disciplinary
Committee or any reference or appeal made to a High Court prior to the
commencement of the Chartered Accountants (Amendment) Act, 2006, shall continue
to be governed by the provisions of this Act, as if this Act had not been
amended by the Chartered Accountants (Amendment) Act, 2006.]
[Professional or other misconduct defined.
22. For the purposes of this Act, the expression “professional
or other misconduct” shall be deemed to include any act or omission provided in
any of the Schedules, but nothing in this section shall be construed to limit
or abridge in any way the power conferred or duty cast on the Director
(Discipline) under sub-section (1) of section 21 to inquire into the conduct of
any member of the Institute under any other circumstances.]
[Constitution of Appellate Authority.
22A. (1) The Central Government shall, by
notification, constitute an Appellate Authority consisting of—
(a) a
person who is or has been a judge of a High Court, to be its Chairperson;
(b) two members to be appointed from amongst
the persons who have been members of the Council for at least one full term and
who is not a sitting member of the Council;
(c) two members to be nominated by the
Central Government from amongst persons having knowledge and practical
experience in the field of law, economics, business, finance or accountancy.
(2) The Chairperson and other members shall
be part-time members.
Term of office of Chairperson and members of Authority.
22B. (1) A person appointed as the Chairperson
shall hold office for a term of three years from the date on which he enters
upon his office or until he attains the age of sixty-five years, whichever is
earlier.
(2)
A person appointed as a member
shall hold office for a term of three years from the date on which he enters
upon his office or until he attains the age of sixty-two years, whichever is
earlier.
Allowances and conditions of service of Chairperson and
members of Authority.
22C. (1) The allowances payable to, and other
terms and conditions of service of, the Chairperson and members and the manner of
meeting expenditure of the Authority by the Council and such other authorities
shall be such as may be specified.
Procedure to be regulated by Authority.
22D. (1) The office of the Authority shall be at
(2) The Authority shall regulate its own
procedure.
(3)
All orders and decisions of the
Authority shall be authenticated by an officer duly authorised
by the Chairperson in this behalf.
Officers and other staff of Authority.
22E. (1) The Council
shall make available to the Authority such officers and other staff members as
may be necessary for the efficient performance of the functions of the
Authority.
(2) The salaries and allowances and
conditions of service of the officers and other staff members of the Authority
shall be such as may be prescribed.
Resignation and removal of Chairperson and members.
22F. (1) The Chairperson or a member may, by
notice in writing under his hand addressed to the Central Government, resign
his office:
Provided that the Chairperson or a member shall, unless he is
permitted by the Central Government to relinquish his office sooner, continue
to hold office until the expiry of three months from the date of receipt of
such notice or until a person duly appointed as his successor enters upon his
office or until the expiry of term of office, whichever is earlier.
(2)
The Chairperson or a member shall
not be removed from his office except by an order of the Central Government on
the ground of proved misbehaviour or incapacity after
an inquiry made by such person as the Central Government may appoint for this
purpose in which the Chairperson or a member concerned has been informed of the
charges against him and given a reasonable opportunity of being heard in
respect of such charges.
22G. (1) Any member of the Institute aggrieved by
any order of the Board of Discipline or the Disciplinary Committee imposing on
him any of the penalties referred to in sub-section (3) of section 21A and
sub-section (3) of section 21B, may within ninety days of the date on which the
order is communicated to him, prefer an appeal to the Authority:
Provided that the Director (Discipline) may also appeal
against the decision of the Board of Discipline or the Disciplinary Committee
to the Authority, if so authorised by the Council,
within ninety days:
Provided further that the Authority may entertain any such appeal after the
expiry of the said period of ninety days, if it is satisfied that there was
sufficient cause for not filing the appeal in time.
(2)
The Authority may, after calling
for the records of any case, revise any order made by the Board of Discipline
or the Disciplinary Committee under sub-section (3) of section 21A and
sub-section (3) of section 21B and may—
(a) confirm,
modify or set aside the order;
(b) impose any penalty or set aside, reduce,
or enhance the penalty imposed by the order;
(c) remit the case to the Board of
Discipline or Disciplinary Committee for such further enquiry as the Authority
considers proper in the circumstances of the case; or
(d) pass such
other order as the Authority thinks fit:
Provided that the Authority shall give an opportunity of being heard
to the parties concerned before passing any order.]
REGIONAL
COUNCILS
Constitution and functions of
Regional Councils.
23. (1) For
the purpose of advising and assisting it on matters concerning its functions,
the Council may constitute such Regional Councils as and when it deems fit for
one or more of the regional constituencies that may be specified by the Central
Government under clause (a) of sub-section (2) of section 9.
(2) The Regional Councils shall be constituted in such manner and
exercise such functions as may be prescribed.
PENALTIES
Penalty for falsely claiming to
be a member, etc.
24. 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, represent that he is in practice or practises as the chartered accountant,
shall be punishable on first conviction with
fine which may extend to one thousand rupees, and on any subsequent conviction
with imprisonment which may extend to six months or with fine which may extend
to five thousand rupees, or with both.
Penalty for using name of the
Council, awarding degrees of chartered accountancy, etc.
24A. (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;
(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, be punishable with fine which may extend on first conviction to one
thousand rupees, and on any subsequent conviction with imprisonment which may
extend to six months, or with fine which may extend to five thousand rupees, or
with both.
(3) [***]
Companies not to engage in
accountancy.
25. (1) No
company, whether incorporated in
(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 which
may extend on first conviction to one thousand rupees, and on any subsequent
conviction to five thousand rupees.
Unqualified persons not to sign
documents.
26. (1) No
person other than a member of the Institute shall sign any document on behalf
of a chartered accountant in practice or a firm of such chartered accountants
in his or its professional capacity.
[(2) Any person who
contravenes the provisions of sub-section (1) shall, without prejudice to any
other proceedings, which may be taken against him, be punishable on first
conviction with a fine not less than five thousand rupees but which may extend
to one lakh rupees, and in the event of a second or
subsequent conviction with imprisonment for a term which may extend to one year
or with fine not less than ten thousand rupees but which may extend to two lakh rupees or with both.]
Maintenance of branch offices.
27. (1) Where
a chartered accountant in practice or a firm of such chartered accountants has
more than one office in
Provided that the Council may in suitable cases exempt any chartered accountant
in practice or a firm of such chartered accountants from the operation of this
sub-section.
(2) Every chartered accountant in practice or a firm of such
chartered accountants maintaining more than one office shall send to the
Council a list of offices and the persons in charge thereof and shall keep the Council
informed of any changes in relation thereto.
28. No person shall be prosecuted under this Act
except on a complaint made by or under the order of the Council or of the
Central Government.
[Chapter
VIIA
Quality
Review Board
Establishment of Quality Review Board.
28A. (1) The Central Government shall, by
notification, constitute a Quality Review Board consisting of a Chairperson and
ten other members.
(2)
The Chairperson and members of the
Board shall be appointed from amongst the persons of eminence having experience
in the field of law, economics, business, finance or accountancy.
(3)
Five members of the Board shall be
nominated by the Council and other five members shall be nominated by the
Central Government.
28B. The Board shall perform the following functions, namely:—
(a) to make recommendations to the Council
with regard to the quality of services provided by the members of the
Institute;
(b) to review the quality of services
provided by the members of the Institute including audit services; and
(c) to guide the members of the Institute to
improve the quality of services and adherence to the various statutory and
other regulatory requirements.
28C. The Board shall
meet at such time and place and follow in its meetings such procedure as may be
specified.
Terms and conditions of services of Chairperson and members
of Board and its expenditure.
28D. (1) The terms
and conditions of service of the Chairperson and the members of the Board, and
their allowances shall be such as may be specified.
(2) The expenditure of the Board shall be
borne by the Council.]
MISCELLANEOUS
29. (1) Where
any country, specified by the Central Government in this behalf by notification
in the Official Gazette, prevents persons of Indian domicile from becoming
members of any institution similar to the Institute of Chartered Accountants of
India or from practising the profession of
accountancy or subjects them to unfair discrimination in that country, no
subject of any such country shall be entitled to become a member of the
Institute or practise the profession of accountancy
in India.
(2) Subject to the provisions of sub-section (1), the Council may
prescribe the conditions, if any, subject to which foreign qualifications
relating to accountancy shall be recognised for the
purposes of entry in the Register.
[Power of Central Government to make rules.
29A. (1) The Central Government may, by
notification, make rules to carry out the provisions of this Act.
(2) In particular and without prejudice to
the generality of the foregoing powers, such rules may provide for all or any
of the following matters, namely:—
(a) the manner of election and nomination in
respect of members to the Council under sub-section (2) of section 9;
(b) the terms and conditions of service of
the Presiding Officer and Members of the Tribunal, place of meetings and
allowances to be paid to them under sub-section (3) of section 10B;
(c) the
procedure of investigation under sub-section (4) of section 21;
(d) the procedure while considering the
cases by the Disciplinary Committee under sub-section (2), and the fixation of
allowances of the nominated members under sub-section (4) of section 21B;
(e) the allowances and terms and conditions
of service of the Chairperson and members of the Authority and the manner of
meeting expenditure by the Council under section 22C;
(f) the procedure
to be followed by the Board in its meetings under section 28C; and
(g) the terms and conditions of service of
the Chairperson and members of the Board under sub-section (1) of section 28D.]
30. (1) The
Council may, by notification in the Gazette of India, make regulations for the
purpose of carrying out the objects of this Act [***].
(2) In particular, and without prejudice to the generality of the
foregoing power, such regulations may provide for all or any of the following
matters :—
(a) the
standard and conduct of examinations under this Act;
(b) the qualifications for the entry of the
name of any person in the Register as a member of the Institute;
(c) the conditions under which any
examination or training may be treated as equivalent to the examination and
training prescribed for members of the Institute;
(d) the
conditions under which any foreign qualification may be recognised;
(e) the manner in which and the conditions
subject to which applications for entry in the Register may be made;
(f) the fees payable for membership of the
Institute and the annual fees payable by associates and fellows of the
Institute in respect of their certificates;
(g) the
manner in which elections to [***] the Regional Councils may be
held;
(h) the
particulars to be entered in the Register;
(i) the functions of Regional Councils;
(j) the training of articled and audit
[assistants], the fixation of limits within which premia
may be charged from articled [assistants] and the cancellation of
articles and termination of audit service for misconduct or for any other
sufficient cause;
(k) the regulation and maintenance of the
status and standard of professional qualifications of members of the Institute;
(l) the
carrying out of research in accountancy;
(m) the maintenance of a library and
publication of books and periodicals on accountancy;
(n) the management of the property of the
Council and the maintenance and audit of its accounts;
(o) the summoning and holding of meetings of
the Council, the times and places of such meetings, the conduct of business
thereat and the number of members necessary to form a quorum;
(p) the powers, duties and functions of the
President and the Vice-President of the Council;
(q) the functions of the Standing and other
committees and the conditions subject to which such functions shall be
discharged;
(r) the terms of office, and the powers,
duties and functions of the Secretary and other officers and servants of the
Council; [and]
(s) [***]
(t) any
other matter which is required to be or may be prescribed under this Act.
(3) All regulations made by the Council under this Act shall be
subject to the condition of previous publication and to the approval of the
Central Government.
(4) Notwithstanding anything contained in sub-sections (1) and (2)
the Central Government may frame the first regulations for the purposes
mentioned in this section, and such regulations shall be deemed to have been
made by the Council, and shall remain in force from the date of the coming into
force of this Act, until they are amended, altered or revoked by the Council.
Powers of Central Government to
direct regulations to be made or to make or amend regulation.
30A. (1) Where
the Central Government considers it expedient so to do, it may, by order in
writing, direct the Council to make any regulations or to amend or revoke any
regulations already made within such period as it may specify in this behalf.
(2) If the Council fails or neglects to comply with such order
within the specified period, the Central Government may make the regulations or
amend or revoke the regulations made by the Council, as the case may be, either
in the form specified in the order or with such modifications thereof as the
Central Government thinks fit.
[Rules, regulations and notifications to be laid before
Parliament.
30B. Every rule and every regulation made and every notification
issued under this Act shall be laid, as soon as may be after it is made or
issued, before each House of Parliament, while it is in session, for a total
period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree
in making any modification in the rule, regulation or notification, or both
Houses agree that the rule, regulation or notification should not be made or
issued, the rule, regulation or notification, shall thereafter have effect only
in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity
of anything previously done under that rule, regulation or notification.]
[Power of Central Government to issue directions.
30C. (1) In the event of non-compliance by the
Council of any provisions of this Act, the Central Government may give to the
Council such general or special directions as it considers necessary to ensure
compliance and the Council shall, in the discharge of its functions under this
Act, comply with such directions.
(2) If, in the opinion of the Central
Government, the Council has persistently made default in giving effect to the directions
issued under sub-section (1), it may, after giving an opportunity of being
heard to the Council, by notification, dissolve the Council, whereafter a new Council shall be constituted in accordance
with the provisions of this Act with effect from such date as may be decided by
the Central Government:
Provided that the Central Government shall ensure constitution of a
new Council in accordance with the provisions of this Act within a period of
one year from the date of its dissolution.
(3)
Where the Central Government has
issued a notification under sub-section (2) dissolving the Council, it shall,
pending the constitution of a new Council in accordance with the provisions of
this Act, nominate any person or body of persons not exceeding five members to
manage the affairs and discharge all or any of the functions of the Council
under this Act.
Protection of action taken in good faith.
30D. No suit,
prosecution or other legal proceeding shall lie against the Central Government
or the Council or the Authority or the Disciplinary Committee or the Tribunal
or the Board or the Board of Discipline or the Disciplinary Directorate or any
officer of that Government, Council, Authority, Disciplinary Committee,
Tribunal, Board, Board of Discipline or the Disciplinary Directorate, for any
thing which is in good faith done or intended to be done under this Act or any
rule, regulation, notification, direction or order made thereunder.
Members, etc., to be public servants.
30E. The
Chairperson, Presiding Officer, Members and other officers and employees of the
Authority, Disciplinary Committee, Tribunal, Board, Board of Discipline or the
Disciplinary Directorate shall be deemed to be public servants within the
meaning of section 21 of the Indian Penal Code (45 of 1860).]
31. Any reference to a chartered accountant or a
registered accountant or a certified or qualified auditor in any other law or
in any document whatsoever shall be construed as a reference to a chartered
accountant in practice within the meaning of this Act.
Act not to affect right of
accountants to practise
as such in Part B States.
32. Nothing contained in this Act shall affect the
right of any person who, at the commencement of this Act, is entitled to engage
himself in the practice of accountancy in any Part B State under any law in
force in that State, to continue to engage himself in the practice of
accountancy in that State after the commencement of this Act.
[See sections 21(3), 21A(3) and
22]
PART
I
Professional misconduct in relation to chartered
accountants in practice
A chartered accountant
in practice shall be deemed to be guilty of professional misconduct, if he —
(1) allows any person to practice in his
name as a chartered accountant unless such person is also a chartered
accountant in practice and is in partnership with or employed by him;
(2) pays or allows or agrees to pay or
allow, directly or indirectly, any share, commission or brokerage in the fees
or profits of his professional business, to any person other than a member of
the Institute or a partner or a retired partner or the legal representative of
a deceased partner, or a member of any other professional body or with such
other persons having such qualifications as may be prescribed, for the purpose
of rendering such professional services from time to time in or outside India.
Explanation.—
In this item, “partner” includes a person residing outside India with whom a
chartered accountant in practice has entered into partnership which is not in
contravention of item (4) of this Part;
(3) accepts or agrees to accept any part
of the profits of the professional work of a person who is not a member of the
Institute:
Provided
that nothing herein contained shall
be construed as prohibiting a member from entering into profit sharing or other
similar arrangements, including receiving any share commission or brokerage in
the fees, with a member of such professional body or other person having
qualifications, as is referred to in item (2) of this Part;
(4) enters into partnership, in or
outside India, with any person other than a chartered accountant in practice or
such other person who is a member of any other professional body having such
qualifications as may be prescribed, including a resident who but for his
residence abroad would be entitled to be registered as a member under clause
(v) of sub-section (1) of section 4 or whose qualifications are recognised by the Central Government or the Council for the
purpose of permitting such partnerships;
(5) secures, either through the services
of a person who is not an employee of such chartered accountant or who is not
his partner or by means which are not open to a chartered accountant, any
professional business:
Provided
that nothing herein contained shall
be construed as prohibiting any arrangement permitted in terms of items (2),
(3) and (4) of this Part;
(6) solicits clients or professional
work either directly or indirectly by circular, advertisement, personal
communication or interview or by any other means:
Provided
that nothing herein contained shall
be construed as preventing or prohibiting—
(i) any chartered accountant from applying or
requesting for or inviting or securing professional work from another chartered
accountant in practice;
(ii) a member from responding to tenders or
enquiries issued by various users of professional services or organisations from time to time and securing professional
work as a consequence;
(7) advertises his professional attainments or
services, or uses any designation or expressions other than chartered
accountant on professional documents, visiting cards, letter heads or sign
boards, unless it be a degree of a University established by law in India or recognised by the Central Government or a title indicating
membership of the Institute of Chartered Accountants of India or of any other
institution that has been recognised by the Central
Government or may be recognised by the Council:
Provided
that a member in practice may
advertise through a write up, setting out the services provided by him or his
firm and particulars of his firm subject to such guidelines as may be issued by
the Council;
(8) accepts a position as auditor previously
held by another chartered accountant or a certified auditor who has been issued
certificate under the Restricted Certificate Rules, 1932 without first
communicating with him in writing;
(9) accepts an appointment as auditor of a
company without first ascertaining from it whether the requirements of section
225 of the Companies Act, 1956 (1 of 1956) in respect of such appointment have
been duly complied with;
(10) charges or offers to charge, accepts or
offers to accept in respect of any professional employment, fees which are
based on a percentage of profits or which are contingent upon the findings, or
results of such employment, except as permitted under any regulation made under
this Act;
(11) engages in any business or occupation
other than the profession of chartered accountant unless permitted by the Council
so to engage:
Provided
that nothing contained herein shall
disentitle a chartered accountant from being a director of a company (not being
a managing director or a whole-time director) unless he or any of his partners
is interested in such company as an auditor;
(12) allows a person not being a member of the
Institute in practice, or a member not being his partner to sign on his behalf
or on behalf of his firm, any balance-sheet, profit and loss account, report or
financial statements.
PART
II
Professional misconduct in relation to members of
the Institute in service
A member of the
Institute (other than a member in practice) shall be deemed to be guilty of
professional misconduct, if he being an employee of any company, firm or person
—
(1) pays or allows or agrees to pay
directly or indirectly to any person any share in the emoluments of the
employment undertaken by him;
(2) accepts or agrees to accept any part
of fees, profits or gains from a lawyer, a chartered accountant or broker
engaged by such company, firm or person or agent or customer of such company,
firm or person by way of commission or gratification.
PART
III
Professional misconduct in relation to members of
the Institute generally
A member of the Institute,
whether in practice or not, shall be deemed to be guilty of professional
misconduct, if he—
(1) not being
a fellow of the Institute, acts as a fellow of the Institute;
(2) does not supply the information
called for, or does not comply with the requirements asked for, by the
Institute, Council or any of its Committees, Director (Discipline), Board of
Discipline, Disciplinary Committee, Quality Review Board or the Appellate
Authority;
(3) while inviting professional work
from another chartered accountant or while responding to tenders or enquiries
or while advertising through a write up, or anything as provided for in items
(6) and (7) of Part I of this schedule, gives information knowing it to be
false.
PART
IV
Other misconduct in relation to members of
the Institute generally
A member of the
Institute, whether in practice or not, shall be deemed to be guilty of other
misconduct, if he—
(1) is held guilty by any civil or
criminal court for an offence which is punishable with imprisonment for a term
not exceeding six months;
(2) in the opinion of the Council,
brings disrepute to the profession or the Institute as a result of his action
whether or not related to his professional work.
[See sections 21(3), 21B(3) and
22]
PART
I
Professional misconduct in relation to chartered
accountants in practice
A chartered accountant
in practice shall be deemed to be guilty of professional misconduct, if he—
(1) discloses information acquired in the
course of his professional engagement to any person other than his client so
engaging him, without the consent of his client or otherwise than as required
by any law for the time being in force;
(2) certifies or submits in his name, or
in the name of his firm, a report of an examination of financial statements
unless the examination of such statements and the related records has been made
by him or by a partner or an employee in his firm or by another chartered
accountant in practice;
(3) permits his name or the name of his
firm to be used in connection with an estimate of earnings contingent upon
future transactions in a manner which may lead to the belief that he vouches
for the accuracy of the forecast;
(4) expresses his opinion on financial
statements of any business or enterprise in which he, his firm, or a partner in
his firm has a substantial interest;
(5) fails to disclose a material fact
known to him which is not disclosed in a financial statement, but disclosure of
which is necessary in making such financial statement where he is concerned
with that financial statement in a professional capacity;
(6) fails to report a material mis-statement known to him to appear in a financial
statement with which he is concerned in a professional capacity;
(7) does not exercise due diligence, or
is grossly negligent in the conduct of his professional duties;
(8) fails to obtain sufficient
information which is necessary for expression of an opinion or its exceptions
are sufficiently material to negate the expression of an opinion;
(9) fails to invite attention to any
material departure from the generally accepted procedure of audit applicable to
the circumstances;
(10) fails to keep moneys of his client
other than fees or remuneration or money meant to be expended in a separate
banking account or to use such moneys for purposes for which they are intended
within a reasonable time.
PART
II
Professional misconduct in relation to members of
the Institute generally
A member of the
Institute, whether in practice or not, shall be deemed to be guilty of
professional misconduct, if he—
(1) contravenes any of the provisions of
this Act or the regulations made there-under or any guidelines issued by the
Council;
(2) being an employee of any company,
firm or person, discloses confidential information acquired in the course of
his employment except as and when required by any law for the time being in
force or except as permitted by the employer;
(3) includes in any information,
statement, return or form to be submitted to the Institute, Council or any of
its Committees, Director (Discipline), Board of Discipline, Disciplinary
Committee, Quality Review Board or the Appellate Authority any particulars
knowing them to be false;
(4) defalcates
or embezzles moneys received in his professional capacity.
PART
III
Other misconduct in relation to members of
the Institute generally
A member of the
Institute, whether in practice or not, shall be deemed to be guilty of other misconduct,
if he is held guilty by any civil or criminal court for an offence which is
punishable with imprisonment for a term exceeding six months.]