CHAKRAVARTTI, C. J.

( 1 ) THIS is a Reference under Section 21 (1) of the Chartered Accountants Act, 1949, made by the Council of the Institute of Chartered Accountants against one Mr. P. K. Mukherji, a Chartered Accountant and a Fellow Member of the Institute, who practises his profession under the name and style of Green and Co. There were three charges against the Accountant, all of which, according to the Council, have been proved.

( 2 ) THE principal facts of the case are comparatively simple, but with regard to some of the details a great deal of confusion still persists. Broadly stated, the facts are as follows. One Mr. B. B. Basu, proprietor of a concern called the Hindustan Engineering and Construction Company, had five appeals pending before the Income-tax Appellate Tribunal. Three of them were income-tax appeals relating respectively to the assessment years 1945-46, 1946-47 and 1947-48 and the remaining two were Excess Profits Tax appeals relating respectively to the chargeable accounting periods ending on 31-3-1945 and 31-3-1946. The appeals had been filed through 'messrs. Orr Dignam and Company, but subsequently. Mr. Basu abandoned that very reputed firm of solicitors for Green and Co. , because he was led to believe by a friend that it would be more advantageous to him to requisition the services of. the Chartered Accountants. About the motives which led Mr. Basu to change an Attorney for an Accountant, I shall have to say something later It appears that after Mr. Basu had established contact with Green and Co. , which meant, Mr. P. K. Mukherji, he put the terms of the engagement into writing by a letter written by him on 14-1-1953. In that letter he stated that he expected relief to the extent of Rs. 1,45,326-1-9 and that the task of the Accountant would be to "get relief of the above sum. " "on your getting the said relief," the letter proceeded to say, "for the above full amount you will be paid a fee at ten per cent of the above sum. " Along with that letter s, cheque for Rs. 1,000/- was enclosed. 2a. Mr. Mukherji acknowledged receipt of Mr. Basil's letter by a reply, dated 21-1-1953 and informed him that he was perusing the connected papers and would write in "detail by the 27th of the month. By his next letter which was dated 11-3-1953, Mr. Mukherji informed Mr. Basu that he thought that relief to the extent of Rs. 1,08,000/- might be expected, but in actual fact even a better result might be obtained.

( 3 ) MR. Mukherji, whom henceforward I' shall call the respondent, seems thereafter to have settled down to the conduct of the appeals. He appears to have asked for and obtained certain adjournments and also filed certain Treasury Chal-3ans. Those activities were continued up to 29-6-1953 and no differences appear to have arisen between the parties.

( 4 ) BEFORE the appeals came up for hearing, various payments were made by Mr. Basu, whom I shall henceforward call the complainant, amounting in all to Rs. 8,250/ -. According to the complainant, such a large payment was made before the hearing of the appeals, because the respondent represented to him that money was required in order to make advance payments to Counsel whom he was going to engage. The complainant's case is that, in actual fact, the respondent took no steps whatever to engage any Counsel, nor did he show any signs of preparing to appear in the appeals himself and whenever an enquiry was made as to what the position with regard to the appeals was, the complainant was put off with the stock reply that the respondent would let him know in due time. Things went in that way till the date fixed for the hearing of the appeals drew very near and the complainant's case is that since he found that the respondent was taking no steps towards his representation in the appeals and he could not safely wait any longer, he went to an Advocate named Mr. H. L. Sarkar, who had already been in the case at its earlier stages and on his advice engaged Mr. S. Mitra

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