Supreme Court strikes down 25-year CA practice requirement for Accountant Members of ITAT
Court declares 25-year practice mandate unconstitutional, ruling it unreasonably delays eligibility until age 60
The Supreme Court has ruled unconstitutional the statutory requirement that chartered accountants must have at least 25 years of practice to be appointed as Accountant Members of the Income Tax Appellate Tribunal (ITAT). A Bench headed by Chief Justice of India BR Gavai and comprising Justices Vinod Chandran and Prasanna B Varale held that such a requirement effectively delays eligibility for appointment until about 60 years of age, which is inappropriate.
The judgment arose from interlocutory applications filed by the Madras Bar Association and the Institute of Chartered Accountants challenging the validity of the provision. The Court directed the Union government to reconsider and amend the law, taking into account the ruling that the 25-year practice rule is unconstitutional, ensuring fair and balanced eligibility criteria for ITAT technical members.
This development opens the field for qualified chartered accountants with lesser years of experience to seek appointment to key judicial posts in the tax appellate system.