With the rising number of tax disputes, the Income Tax Department, for the first time, will hire 50 young professionals to strengthen litigation management before Income Tax Appellate Tribunal (ITAT).

These professionals will be hired for a period up to two years. They will be given ₹40,000 a month. Advertisements for inviting professionals is set to be completed by August 25, while screening and selection committee will be formed by August 31. Based on the recommendation of the committee, process of selection will be completed by October 31 and in next one-month topics for these professionals will be finalised.

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According to a communication from Central Board of Direct Taxes (CBDT) to field jurisdictions, Mumbai region will get maximum (12) of these professionals, followed by Delhi (9), Gujarat (5), Tamil Nadu and Puducherry (4) and West Bengal and Sikkim (4). A law graduate/post graduate or Chartered Accountants up to the age of 35 years will be eligible under the scheme. Selected candidate will get 8 years of leave in a year.

The communication has clarified that no other facilities such as DA, accommodation, residential phone/conveyance/transport, foreign travel, personal staff, medical reimbursement, CGHS etc. would be admissible. The engagement will neither constitute a regular job or appointment of any nature in Income Tax Department, nor it will be a relationship of employer and employee between the Income Tax Department and the Young Professional.  Also, in case of death during engagement, no compensation will be paid.

ITAT is the second appellate authority after the Commissioner of Income-Tax (Appeals). Appeal to the ITAT can be filed by any of the aggrieved party either by the taxpayer or by the Assessing Officer. The ITAT is constituted by the Central Government and functions under the Ministry of Law. ITAT consists of two classes of members – Judicial and Accountant.

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Talking about the scheme of Young Professionals, the Income Tax Department said while all efforts are taken to reduce litigations, differences of views of the Taxpayer and the Department on issues of facts and law cannot be totally obviated. Litigations on the issues concerning facts are finally settled at the level of ITAT and officers of the level of CIT/Addl.CIT/Jt.CIT are posted in various benches of ITAT across the country to represent and defend the Department’s stand on tax litigations.

“With a view to augment departmental representation in ITAT, this Scheme envisions engagement of Young Graduates in Law and Accountancy who are rich in domain knowledge. Such resources would aid the departmental officers in preparation of the cases admitted for hearing in Tribunals. In addition, they will also take up research/study work encompassing critical areas of tax litigation for effective litigation management,” it said.

Starting in 1941 with six Members constituting three Benches — one each at Delhi, Kolkata (Calcutta), and Mumbai (Bombay), the number of Benches has progressively increased and presently ITAT has 63 Benches at 27 different stations covering almost all the cities having a seat of the High Court. It is a quasi-judicial institution and its orders passed are final. However, an appeal can be filed against the order in the High Court only if a substantial question of law arises for determination.

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