SUDHIR AGARWAL, KAUSHAL JAYENDRA THAKER, JJ. - (1.) This Reference under Section 21 (5) of the Chartered Accountants Act, 1949 (hereinafter referred to as "Act, 1949") has been made by Council of Institute of Chartered Accountants of India (hereinafter referred to as "ICAI") in the matter of D.K.Agrawal, FCA of M/s Dinesh K. Agrawal and Co., Chartered Accountants, 46A, Madhav Kunj, Pratap Nagar, Agra.
(2.) Facts in brief are that Shri A.K. Sawhney, the then Inspecting Assistant Commissioner of Incometax, (Assessment), Agra (hereinafter referred to as "IACIT") made a complaint dated 07.02.1986 against Sri D.K. Agrawal making following allegations: "1. Misconduct and misdemeanour-indulging in practise of offering and paying bribes to the officers and staff of the Government as a means of expediting his work by resorting to such unfair means. 2. Fabrication of documents, books of accounts, trust deeds etc. (including recovery of rubber seals of various officers from his residence). 3. Charging fixed percentage of commission on bogus and fictitious capital lent to others. 4. Engaging in activities other than occupation of Chartered Accountant. 5. Misuse of Degree and qualifications during the period when he did not possess such degree of qualifications. 6. Fabrication of books of accounts, documents and balance sheets. 7. Committing acts of cheating, forgery and defrauding the revenue by forging challans."
(3.) Copy of complaint was forwarded to respondent vide ICAI's letter dated 30.05.1986 asking him to file his written statement. Vide letter dated 20.06.1986, respondent said that some papers of complaint were not clear and requested ICAI to send clear copies. Desired documents were forwarded to respondent vide ICAI's letter dated 04.09.1986 and he was requested to submit his written statement. Vide letter dated 20.09.1986 respondent asked that complainant be directed to sent statement on oath about appearance of respondent before Income Tax Authorities and signing balance sheet etc. He was informed by ICAI' vide letter dated 13.10.1986 that under Act, 1949 and Rules framed thereunder, an affidavit is not required to support any complaint and he was advised to submit written statement on the basis of record made available. He was also informed that in case ICAI refers the matter to Disciplinary Committee (hereinafter referred to as "DC"), complainant would be required to appear before DC and make his submission on oath in the presence of respondent and he can cross-examine complainant also before DC. Respondent again sent a letter dated 28.01.1987, informing that he has earlier sent two letters, requiring certain information but has not received any response, though these letters had been received by ICAI.;