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Attention of the Central Board of Direct Taxes (CBDT) has been drawn to a news item appearing in a section of the press today regarding the engagement of Smt Nalini Chidambaram as a special counsel for the Income Tax Department.
The Board would like to clarify that in January, 2004, Smt Pushya Sitaraman, Senior Standing Counsel for the Income Tax Department, Chennai briefed Shri P.Chidambaram (then practising as a Senior Advocate) in a case involving large revenue (clubbed with a batch of cases raising the same issue). The case was not taken up for hearing until May, 2004, when Shri Chidambaram became Finance Minister.
In July, 2004, due to the non-availability of Shri Chidambaram, Smt Pushya Sitaraman persuaded Smt Nalini Chidambaram, Senior Advocate, to take up the case, in view of her long experience and familiarity with the subject. A proposal to this effect, received from CCIT-I, Chennai was approved by the CBDT as per the prescribed procedure.
CBDT’s proposals for engagement of counsel are not submitted to the Finance Minister for approval. In this case also, the file was not put up to the Finance Minister. Nor was the Finance Minister informed of the matter. In retrospect, not informing the Finance Minister was a lapse on the part of the Board.
This is the sole occasion on which Smt Nalini Chidambaram was engaged as a special counsel by the Income Tax Department.
The Board regrets any embarrassment caused to the Finance Minister in this matter.
BSC/GN-322/05
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