Gross negligence by a chartered accountant in tax proceedings amounted to professional misconduct and justified disciplinary sanction.

Persistent failure by a chartered accountant to attend tax proceedings, pursue the client's appeal, and safeguard appeal papers was treated as gross negligence amounting to professional misconduct under the Act and the Second Schedule. The disciplinary bodies found that this conduct led to an ex parte assessment, financial loss, and harassment to the client, and the High Court found no reason to differ from those concurrent findings. The recommendation to remove the accountant's name from the register for one month was accepted.

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Issues: Whether the respondent-chartered accountant was guilty of professional misconduct for gross negligence in handling the complainant's tax matters, and whether the punishment recommended by the disciplinary machinery warranted confirmation.

Analysis: The reference arose after the Institute and its Disciplinary Committee found that the respondent had repeatedly failed to appear before the tax authorities, had not properly pursued the appeal, had not kept track of the appeal papers, and had thereby caused ex parte assessment, financial loss, and harassment to the complainant. The record showed that the respondent had been given opportunities to meet the allegations before the Institute and the Disciplinary Committee. On the materials considered by the disciplinary bodies, the conduct was found to amount to gross negligence in the discharge of professional duties and thus to professional misconduct within the meaning of the Act and the Second Schedule. In reviewing the reference under section 21(5) and section 21(6), the Court found no reason to differ from the concurrent findings of the disciplinary bodies.

Conclusion: The respondent was guilty of professional misconduct and the recommendation to remove his name from the register for one month was accepted.

Ratio Decidendi: A chartered accountant's persistent failure to attend to a client's tax proceedings and to safeguard the client's appeal papers, resulting in prejudice to the client, constitutes professional misconduct by reason of gross negligence warranting disciplinary sanction.

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