Input- Output Ratio

A Chartered Accountant’s client wanted to sell his large immovable property. It was ancestral, and there were 3 to 4 co-owners. A client approached the CA and entrusted the assignment to him. The client said that he would also prefer to have a good lawyer in the picture.

The CA, as usual, was overly sincere and desired to save income tax for the client. He gave him several lawful advice. He broad-based the ownership structure so as to divide the capital gains. Internal gifts did not attract income tax. He also tried to save stamp duty. Different individual members of the family could claim different exemptions legitimately. The client was very happy.

The CA asked for some initial payment of fees. The client said — Sir, you are aware I have no money. That is why I am selling my property.

The CA met the purchaser many times. Meetings were held in the CA’s office, and the CA spent liberally on hospitality. Then, they approached the lawyer selected by the client. On three or four occasions meetings with the lawyer got postponed after waiting for more than one or two hours, as he was held up in a Court. After meeting the lawyer, the lawyer tried to understand the facts and delegated the work to his junior. The lawyer took advance fees, which the client instantly paid. He assured the CA that he would pay him later.