CAs Gain Equal Recognition for ITAT Appointments

The Institute of Chartered Accountants of India (ICAI) recently celebrated a landmark judgment by the Supreme Court of India that marks a significant win for Chartered Accountants in the legal and tax professions. On 20 November 2025, a Supreme Court bench headed by the Chief Justice of India and Justice K. Vinod Chandran invalidated a rule that required 25 years of experience for Chartered Accountants to be eligible for appointment as Members (Accountants) of the Income Tax Appellate Tribunal (ITAT).

What Does This Judgment Mean?

The Supreme Court has acknowledged the right of Chartered Accountants to be treated at par with Advocates regarding experience requirements for ITAT membership. Specifically:

• The 25-year experience requirement for Chartered Accountants has been declared invalid and unconstitutional.
• Instead, a 10-year experience criterion, which is applicable to Advocates, shall apply to Chartered Accountants as well.
• The ruling states that requiring 25 years of practice would mean Chartered Accountants could only enter this service after the age of 50, which the court found unreasonable and discriminatory.

Key Extract from the Judgment

“We see no difficulty in applying the same analogy to Chartered Accountants, who are to be appointed as Accountant/Technical Members in the ITAT.
We, therefore, hold that the provision which requires a Chartered Accountant to have minimum experience/practice of 25 years for becoming eligible for appointment as Accountant/Technical Member is also invalid and unconstitutional.”

Why Is This Judgment Important?

• Level Playing Field: The decision ensures that Chartered Accountants are not unfairly discriminated against compared to Advocates when it comes to eligibility for senior tribunal appointments.
• Encouragement for Professionals: It opens doors for experienced Chartered Accountants, who often have deep expertise in accounting, taxation, and finance, to contribute effectively to the ITAT at an earlier stage in their careers.
• Legal Precedent: This judgment strengthens the principle that qualifications and experience requirements must be fair, reasonable, and non-discriminatory.
• Boost to ITAT Efficiency: With more qualified professionals eligible for appointment, the ITAT can benefit from a broader talent pool, potentially speeding up tax dispute resolutions.

About ITAT and the Role of Members

The Income Tax Appellate Tribunal is a quasi-judicial institution that hears appeals against orders passed by income tax authorities. Members of the ITAT, including Accountant Members, play a critical role in delivering judgments on complex tax matters. Traditionally, these posts have been reserved for advocates or professionals with extensive experience.

This Supreme Court ruling now officially recognizes that Chartered Accountants with 10 years of experience are equally qualified to serve as Members, putting them on the same footing as Advocates.

Conclusion

This Supreme Court judgment is a welcome and progressive development for the Indian tax and legal landscape. By removing an unnecessarily high barrier, it ensures fairness and inclusivity in appointments to the ITAT. Chartered Accountants, long respected for their expertise in finance and taxation, can now more easily serve in this important judicial capacity, benefiting taxpayers and the justice system alike.

Print