INCOME TAX

Guidelines for engagement of Special Counsels for representing the Income-tax Department before High Court/ITAT/Other Courts

INSTRUCTION NO. 3/2008, DATED 25-3-2008

The CBDT has been receiving references for engagement of advocates as Special Counsels for representing the Department in important cases before various High Courts, ITATs and other Judicial fora. Engagement of Special Counsels require the approval of the competent authorities within the Ministry of Finance as well as the Ministry of Law and Justice.

2. In order to streamline the procedure for engagement of Special Counsels and to bring about uniformity in the proposals being forwarded to the CBDT, the following guidelines should be complied with :

(i)  Proposals for engagement of Special Counsels should be sent only in the cases where.

(a) important/complex question(s) of law having wide ramification(s) is/are involved or

(b) any statutory provision is under challenge or

(c) large quantum of revenue is at stake or

(d) other important issues are involved necessitating such engagement.

(ii)  Proposals should be forwarded on case to case basis. The name of the case, case no., assessment year, name of the Court etc. for which engagement of Special Counsel is proposed should be clearly mentioned in the proposal. All such proposals should be accompanied by Proforma-A enclosed herewith.

(iii) The CCIT/CIT should ensure that the advocate being recommended for engagement as Special Counsel has adequate expertise and experience in handling the nature of issues involved in dispute.

(iv) Prior consent of the advocate proposed to be engaged as Special Counsel and the terms of engagement should be duly obtained. Further his availability to represent the Departments case should also be ascertained before sending the proposals to the CBDT.

(v) The engagement of Special Counsels require the approval of competent authorities within the Ministry of Finance as well as within the Ministry of Law and Justice. The proposals therefore must be sent to the Board at least a month before the scheduled/expected date of hearing.

This may be brought to the knowledge of all the officers concerned in your charge.

PROFORMA - A

PROFORMA FOR ENGAGEMENT OF SPECIAL COUNSEL

1.	Name of the case
2.	Assessment years involved
3.	Appeal No./Case No.
4.	Court/Tribunal where matter is to be contested
5.	Issues involved in brief, stating the reason why a Special Counsel is required to be engaged. It may also be clarified (a) Whether any statutory provisions is under challenge (b) Whether the case involves substantial question of law having wide ramifications (c) Whether large quantum of revenue is at stake(quantities of revenue to be specified) (annexure may be attached, if necessary)
6.	Name(s) and address of the counsels recommended for engagement
7.	Whether consent of the counsel has been taken and availability ascertained.
8.	Specify the terms of engagement
9.	Next scheduled date of hearing before the Court/Tribunal
10.	Any other information required to be furnished