Ahmedabad: The Board of Discipline of the Institute of Chartered Accountants of India (ICAI) has initiated hearings against around 15 chartered accountants (CAs) based in Ahmedabad. These professionals are accused of facilitating fake donations to registered unrecognised political parties (RUPPs).
According to sources, the Ahmedabad Income Tax Department filed complaints after an investigation revealed that donors sent money via cheques to RUPPs and later received the funds back in cash after a commission was deducted. Sources also stated that, during questioning by tax authorities, several CAs admitted to being involved in such transactions.
The ICAI’s disciplinary hearings began in July in Ahmedabad. During the proceedings, most of the accused denied the charges, contradicting their earlier confessional statements made before Income Tax officials. The Board is currently examining evidence from both sides, with the next hearing expected in September.
Sources indicated that a verdict could be delivered by the end of the financial year. If found guilty, the CAs may face temporary suspension from ICAI membership, monetary penalties, or both.
The Income Tax Department’s probe into RUPPs uncovered that thousands of taxpayers in Gujarat had claimed deductions under Section 80GGC of the Income Tax Act for donations to political parties. However, investigations found that many such political parties returned the donation amounts in cash to donors after deducting a commission.
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