The prosecution was launched for issuing the Form No 15CCA for transferring the amount . The accused challenged the prosecution proceedings . Quashing the proceedings the Court held that in issuing form 15CA under rule 37BB of the Income-tax Rules, 1962 , a chartered accountant is required only to examine the nature of the remittance and nothing more. The chartered accountant is not required to go into the genuineness or otherwise of the documents submitted by his clients. Held, that the accused Murali Krishna Chakrala had issued five form 15CB in favour of B.K.Electro Tool Products which were handed over by him to his client Kiyam Mohammed for which, a sum of Rs. 1,000 per certificate was given to him as remuneration. The prosecution Murali Krishna Chakrala in the facts and circumstances of the case at hand, could not be sustained.Court also observed that the Chartered Accountant is required to only examine the nature of remittance and nothing more .
Murali Krishna Chakrala v. Dy. Director, Directorate Of Enforcement (2023)457 ITR 579 (Mad)(HC)
Prevention of Money Laundering Act , 2002 .
S. 3: Offence of money -laundering -Offences And Prosecution — Money-Laundering — Auditor —Transfer of foreign exchange -Fictitious Bank accounts – Issue of tax determination certificates in Form 15CCA without ascertaining genuineness of documents — Not an offence- The Chartered Accountant is required to only examine the nature of remittance and nothing more . [S. 4 , ITRules , 1962 , 37BB , Form 15CA , Indian Penal Code , 420, 465, 467, 471 Art. 226 ]