CA Deepali is a practicing Chartered Accountant having office in Surat. She is owner of creative.net. In order to generate additional revenue CA…

As per Clause (11) of Part I of Schedule I to the Chartered Accountants Act, 1949, a member in practice is deemed to be guilty if he 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. As per Regulation 190A, a chartered accountant in practice not to engage in any other business or occupation other than the profession of accountancy except with the permission granted in accordance with a resolution of the Council. In the given case, CA Deepali is a practicing chartered accountant having office in Surat. CA Deepali is owner of creative.net. In order to generate additional revenue, CA Deepali sold this domain name for earning royalty of 3,50,000 to GRIP Limited. One of the directors of GRIP Limited contended that CA Deepali has violated the Code of Conduct. CA Deepali responded that there is no violation of Code of Conduct as selling of domain name is not related to any professional assignment which requires approval of the Institute. As per Regulation 190A, the activity of selling domain name for earning Royalty would amount to "other business/occupation” without approval is prohibited. Hence, CA Deepali is guilty of professional misconduct under Clause 11 of Part I of Schedule I to the Chartered Accountants Act, 1949 for selling domain name for a royalty.