Sections 22A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A cost accountant who is penalised by the Board of Discipline or the Disciplinary Committee can appeal to the Appellate Authority. Sections 22A to 22E set up that Authority by borrowing the one under the Chartered Accountants Act, 1949, with a change to who the part-time members are, and give the appeal period and the Authority's powers. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
The Appellate Authority under the Chartered Accountants Act, 1949 is deemed to be the Authority for this Act, with part-time members drawn from former Council members of the Institute of Cost Accountants of India. A member aggrieved by a penalty may appeal within ninety days of the order being communicated; the Director (Discipline) may also appeal if authorised by the Council. The Authority may confirm, modify, set aside, enhance or reduce the penalty or remit the case. The 2022 changes to section 22E (firms, a no-challenge clause for vacancies) are enacted but not in force.
How this article reads the Act
This article follows the Act as printed by the Institute (as amended in 2011), read with the 2022 Amendment Act to the extent brought into force by S.O. 2184(E) dated 10 May 2022. Section 62 of that Act, which amends section 22E, is not among the provisions brought into force. A later commencement notification should be checked; none was found in the sources consulted. Sections 22A to 22D were not amended in 2022.
Section 22A: constitution of the Authority
The Appellate Authority constituted under sub-section (1) of section 22A of the Chartered Accountants Act, 1949 is deemed to be the Appellate Authority for the purposes of this Act. One modification applies: for clause (b) of that sub-section (1), the following is read:
the Central Government shall, by notification, appoint two part-time members from amongst the persons who have been members of the Council of the Institute of Cost Accountants of India for at least one full term and who is not a sitting member of the Council.
So the Authority sits as one body for both Acts, but when it deals with cost accountants the two part-time members come from the cost accountants' own former Council members. The other members of the Authority are as constituted under the chartered accountants' Act, whose text is explained in our article on that Authority's constitution.
Section 22B: term of office
A person appointed as a member holds office for three years from the date he enters upon his office, or until he attains the age of sixty-two years, whichever is earlier.
Section 22C: procedure and conditions of service
The provisions of sections 22C, 22D and 22F of the Chartered Accountants Act, 1949 apply to the Authority in relation to the allowances and terms and conditions of service of its Chairperson and members, and in the discharge of its functions under this Act, as they apply to it in the discharge of its functions under that Act. The details are in those sections of the chartered accountants' Act.
Section 22D: officers and staff
- 22D(1): the Council makes available to the Authority such officers and other staff as are necessary for the efficient performance of its functions.
- 22D(2): the salaries, allowances and conditions of service of those officers and staff are as may be prescribed.
Section 22E: appeal to the Authority
In force today (2006 text)
Section 22E(1). Any member of the Institute aggrieved by an order of the Board of Discipline or the Disciplinary Committee imposing any of the penalties in section 21A(3) and section 21B(3) may, within ninety days from the date on which the order is communicated to him, appeal to the Authority.
- First proviso: the Director (Discipline) may also appeal against a decision of the Board or Committee to the Authority if authorised by the Council, within ninety days.
- Second proviso: the Authority may entertain an appeal after the ninety days if it is satisfied there was sufficient cause for not filing in time.
Section 22E(2). The Authority may, after calling for the records of any case, revise any order made by the Board or Committee under section 21A(3) and section 21B(3), and may:
- (a) confirm, modify or set aside the order;
- (b) impose any penalty, or set aside, reduce or enhance the penalty imposed;
- (c) remit the case to the Board or Committee for such further enquiry as it considers proper; or
- (d) pass such other order as it thinks fit.
Proviso: the Authority gives the parties concerned an opportunity of being heard before passing any order.
2022 changes (enacted, not in force)
| Provision of 22E | Change in section 62 of the 2022 Act |
|---|---|
| (1) | "Any member of the Institute or a firm"; "imposing on such member or firm"; the references become section 21A(5) or (6) and section 21B(5) or (6), as the case may be; "communicated to such member or firm" |
| (2) | The references to section 21A(3) and 21B(3) become section 21A(5) or (6) and section 21B(5) or (6) |
| (3) (new) | No order, act or proceeding of the Authority is to be called in question merely because of a defect in its constitution, a casual vacancy or the absence of one or two members |
| Explanation 1 (new) | For Chapter V: (A) "member of the Institute" includes a person who was a member on the date of the alleged misconduct though he has ceased to be one at the time of the inquiry; (B) a registered firm is also liable for misconduct of a member who was its partner or owner on that date, though he has since ceased to be so |
| Explanation 2 (new) | No action under this Chapter bars a Central Government Department, a State Government or any statutory authority or regulatory body from taking action against a member or registered firm under any other law |
The sub-section references in the 2022 text point to the new sections 21A(5) and (6) and 21B(5) and (6), which are also not in force. Until then, appeals lie against orders under the in-force sub-sections (3) of sections 21A and 21B; see our articles on the Board of Discipline and the Disciplinary Committee.
A short example
The Disciplinary Committee orders the removal of Sanjay Pillai's name for two years and fines him. The order is communicated to him on 5 March. He has ninety days from that date to appeal. If he finds a missing document and files on day ninety-five, the second proviso lets the Authority entertain the appeal only if it is satisfied there was sufficient cause. The Authority calls for the records, hears both Sanjay and the Institute, and can reduce, confirm or even enhance the penalty. Appeal timing is strict, so a member who receives an order should act soon.
A member or the Institute that needs to prepare an appeal, or answer one, can use legal dispute resolution support.
The same rule for chartered accountants
The Authority's own provisions are in Sections 22A to 22F of the Chartered Accountants Act, 1949 and the appeal in Section 22G. This Act borrows the former and has its own text of the appeal section.
Need help with an appeal?
If a penalty has been imposed on you or a member you advise, our legal dispute resolution team can help you prepare the appeal within the ninety-day period.
Key takeaways
- The chartered accountants' Appellate Authority is deemed to be the Authority here, with two part-time members from former Council members of the Institute.
- Members hold office for three years or until age sixty-two, whichever is earlier.
- Appeal lies within ninety days of the order being communicated; late appeals need sufficient cause.
- The Authority may confirm, modify, set aside, enhance or reduce a penalty, or remit the case, after hearing the parties.
- The 2022 changes to section 22E are not in force.
Read next
- Section 21B: the Disciplinary Committee
- Sections 21C, 21D and 22: civil court powers and misconduct defined
- Sections 23 to 25: Regional Councils and penalties
Disclaimer: Based on the Cost and Works Accountants Act, 1959 (now the Cost Accountants Act, 1959) as printed by the Institute of Cost Accountants of India (as amended in 2011), read with the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 to the extent brought into force by S.O. 2184(E) dated 10 May 2022, as consulted on 3 October 2026. Regulations, rules, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.