Supreme Court Rules CAs' 25‑Year Practice Mandate for ITAT Appointments Invalid and Unconstitutional [Read Order]
The Court held the provision arbitrary, noting that it effectively restricts entry to professionals only after the age of 50, thereby excluding younger, competent candidates
ITAT, Supreme Court, Supreme Court Rules
ITAT, Supreme Court, Supreme Court Rules
The Supreme Court has invalidated the statutory requirement that Chartered Accountants ( CA ) must have a minimum of 25 years of practice experience to qualify for appointment as Accountant/Technical Members of the Income Tax Appellate Tribunal ( ITAT ). The Court declared the provision unconstitutional, terming it arbitrary and exclusionary.
The challenge arose in the batch of petitions led by the Madras Bar Association, with the Institute of Chartered Accountants of India also joining the proceedings.
Petitioners argued that the 25‑year mandate was unreasonable, as it effectively made Chartered Accountants eligible only after attaining the age of 50. This, they contended, shrinks the pool of qualified candidates and undermines the efficiency and independence of tribunals.
The petitioners further pointed out that a similar requirement for advocates had already been struck down in Madras Bar Association (IV), and the same principle should apply to Chartered Accountants.
Agreeing with these submissions, the Division bench comprising Chief Justice BR Gavai and Justice Vinod Chandran categorically held that the provision was invalid. In its reasoning, the bench observed that if such a requirement were upheld, Chartered Accountants would be entitled to enter tribunal service only after crossing 50 years of age, thereby excluding younger professionals who may otherwise be qualified to serve.
The Court emphasised that its earlier ruling in MBA (IV), which struck down the 25‑year practice requirement for advocates, applied with equal force to Chartered Accountants.
The judgment records: “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.”
Beyond striking down the provision, the Court issued a direction to the Union of India, stating that while enacting future laws, it must take into consideration that the 25‑year requirement for Chartered Accountants has been declared unconstitutional.
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