While considering a petition by the Institute of Chartered Accountants of India (ICAI) challenging the eligibility criteria of an accountant member appointed to the Income-tax Appellate Tribunal under the Income-tax Act, 1961, the Supreme Court has issued notice to the centre.
The Tribunal (Conditions of Service) Rules, 2021 prescribe that accountant members must have a minimum of twenty-five years of experience in the field of accountancy for membership of the ITAT.
The constitutionality of this provision has been called into question by the ICAI pointing out that the Income Tax Act prescribed a minimum experience of 10 years in the practice of accountancy for accountant members in Sub-section 2A of Section 252. “When the Act says 10 years, the rules cannot prescribe something contrary to that,” the counsel vehemently argued.
A Bench of Justices M.R. Shah and M.M. Sundresh issued notice on Monday, stated that “Application for amendment is allowed. Issue notice, returnable on 02.01.2023. Dasti, in addition, is permitted.”
Senior Advocate and amicus curiae Arvind Datar had also supplied that it would be very difficult for competent and successful Advocates to “uproot themselves and accept membership of tribunals”, if they became eligible only at the very belated age of 50 years and resultantly, those less competent would be willing to take up the mantle.
Echoing similar sentiments, the counsel for ICAI asked, “Chartered accountants need 25 years for acquiring the requisite qualification. Then, they need to have another 25 years of experience. This means that the member will be 50 years old during the appointment to the tribunal. At 50, who will be willing to accept the membership?” “Please look at the reality of the situation. This matter will require consideration,” he emphasised.
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