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{
    "id": 5,
    "tags": [
        {
            "id": 3,
            "name": "15CACB"
        }
    ],
    "title": "CA is not expected to check the genuineness of documents submitted by the client for issuing Form 15CB:  Murali Krishna Chakrala Vs. The Deputy Director, Directorate of Enforcement- [2022] Madras High",
    "content": "<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">The petitioner, a Chartered Accountant, was approached by his client for the issuance of Form 15CB. The client was required to make payments for imports. The petitioner issued Form 15CB on his client&#39;s request after reviewing the information submitted by the client.</span></span></p>\r\n\r\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">Subsequently, an investigation was carried out on the client and found that it was involved in money laundering. The allegations indicated opening fictitious bank accounts, forged bills of entry, parking huge funds in the bank account, and transferring funds to various overseas parties. During the investigation, the Enforcement Directorate (ED) discovered the petitioner&#39;s involvement as Form 15CB was filed in his name and overseas payments were made through bank accounts using such forms.</span></span></p>\r\n\r\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">After the investigation, the Enforcement Directorate filed a supplementary complaint on the petitioner, contending his involvement in the generation of proceeds of crime.</span></span></p>\r\n\r\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">Aggrieved by the order of the Enforcement Directorate, a petition was filed before the trial court but with no success. Thereafter, a petition was filed before the Madras High Court.</span></span></p>\r\n\r\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">The Madras High Court held that the petitioner, being a Chartered Accountant, in the course of his professional duties, gave Form 15CB after reviewing the documents that his client presented. Petitioner did not have any reason to suspect the genuineness of the import transaction made by his client. He has only received the remuneration for issuance of such Form 15CB and nothing more.</span></span></p>\r\n\r\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">Further, a Chartered Accountant is only required to examine the nature of remittance and nothing beyond that. There is no requirement to dig deep into the genuineness of the documents submitted by his clients.</span></span></p>\r\n\r\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\">Since the petitioner issued Form 15CB after scrutinizing the documents furnished to him by the client, he discharged his duties following the professional behavior expected from him. Therefore, the Court discharged the petitioner from the prosecution and enlisted him as a witness.</span></span></p>",
    "summary": "The Madras High Court held that the petitioner, being a Chartered Accountant, in the course of his professional duties, gave Form 15CB after reviewing the documents that his client presented. Petitioner did not have any reason to suspect the genuineness of the import transaction made by his client. He has only received the remuneration for issuance of such Form 15CB and nothing more. A  Chartered Accountant is only required to examine the nature of remittance and nothing beyond that. There is no requirement to dig deep into the genuineness of the documents submitted by his clients. Therefore, the Court discharged the petitioner from the prosecution and enlisted him as a witness.",
    "created_at": "2023-05-12T11:06:02.447439+05:30",
    "updated_at": "2023-05-12T11:06:02.447455+05:30",
    "slug": "ca-is-not-expected-to-check-the-genuineness-of-doc",
    "keywords": "15cb, Genuineness of the documents, Madras  High Court",
    "image": null,
    "created_by": null,
    "catagory": [
        2
    ]
}