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Journalism of Courage
The Central Board of Direct Taxes today apologised to Finance Minister P. Chidambaram for not informing him that the Income Tax department had engaged his advocate wife Nalini to fight a case.
After AIADMK MP N Jothi sought to raise the issue of the I-T department’s move to use Nalini’s services in the Rajya Sabha, the Board said in a release issued today that it “regrets any embarrassment caused to the Finance Minister in this matter”.
It added: “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…Not informing (him)… was a lapse on the part of the Board.”
“… In January 2004, Pushya Sitaraman, senior standing counsel for the I-T department, Chennai briefed P. Chidambaram (then practising as a senior advocate) in a case involving large revenue…The case was not taken up for hearing until May 2004 when Chidambaram became Finance Minister,” it said.
However, “… in July 2004, due to the non-availability of Chidambaram, Pushya Sitaraman persuaded 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. This is the sole occasion on which Nalini Chidambaram was engaged as a special counsel by the I-T department,” the board said.
