CAs on a par with advocates for ITAT appointment, rules Supreme Court

The Supreme Court has ruled that chartered accountants with ten years' experience can qualify for ITAT membership, striking down the earlier 25-year requirement as unconstitutional

Chartered accountants (CAs) must be treated on a par with advocates for appointment as accountant member of the Income Tax Appellate Tribunal (ITAT), the Supreme Court on Friday ruled, holding that 10 years’ professional experience qualifies CAs to be considered for the job.

 

The court struck down as unconstitutional the earlier requirement that mandated at least 25 years’ experience for CAs seeking appointment as technical member.

 

The court also noted that the Madras Bar Association and Institute of Chartered Accountants of India (ICAI) had argued that the 25-year requirement was arbitrary, adding, the Bench was “in complete agreement with the submission made on behalf of the petitioner(s)”.

   

The Bench observed it had already declared a similar 25-year experience requirement for advocates unconstitutional and saw “no difficulty in applying the same analogy to Chartered Accountants” being considered for ITAT membership. 

 

Under existing law, a lawyer becomes eligible to serve as judicial member of the ITAT with 10 years’ practice. The court directed the Centre to factor in these findings when framing a new law on tribunal appointments. 

 

“While enacting the law, the Union of India shall also take into consideration that the requirement of 25 years of experience/practice for Chartered Accountants… has been declared invalid and unconstitutional,” the Bench of Chief Justice of India B R Gavai and Justice K Vinod Chandran said in its November 20 order.

 

This order has now been incorporated into Wednesday’s broader judgment that struck down the minimum age bar of 50 years and the truncated four-year tenure for tribunal members under the Tribunal Reforms Act, 2021.

 

The court held that the Centre had attempted to revive, in only slightly altered form, provisions already declared unconstitutional.

 

ICAI President Charanjot Singh Nanda welcomed the ruling, saying it granted “appropriate recognition” to the profession. 

 

“Recognising 10 years’ experience as the qualifying threshold aligns with merit and global best practices, and ensures that capable professionals can contribute to justice delivery. This restores the status quo through a balanced and progressive approach,” he said.

 

Ankit Jain, partner, Ved Jain & Associates, a tax firm, said the decision finally “levels the playing field” by removing an age-linked barrier that had been struck down for lawyers years ago.

 

CAs bring in domain expertise in accounting, taxation, and financial scrutiny, skills central to the ITAT’s functioning, and the ruling will allow younger professionals to contribute “at their professional peak”, he said. 

 

According to him, the judgment also opens the door for similar reforms in the Goods and Services Tax Appellate Tribunal, which still excludes CAs.

 

Ritika Nayyar, tax partner at law firm Singhania & Co, said the ruling placed CAs “on a par with lawyers for eligibility”, calling the 25-year threshold outdated.

 

She said earlier access for CAs would broaden the tribunal’s talent base and strengthen its technical capacity.

 

B Shravanth Shanker, advocate-on-record, described the judgment as removing an “unnecessary obstacle” that kept out mid-career CAs despite their contemporary expertise.

 

He said aligning eligibility with institutional needs would widen the pool of capable candidates and improve the tribunal’s pace, consistency, and quality.