The Supreme Court of India issued notice on Monday on a petition challenging the eligibility criteria for an accountant member appointed to the Income-tax Appellate Tribunal under the Income-tax Act of 1961. According to the Tribunal (Conditions of Service) Rules, 2021, accountant members must have a minimum of twenty-five years of experience in the field of accounting to be eligible for membership in the ITAT. The Institute of Chartered Accountants of India has questioned the constitutionality of this provision.

The petitioner organisation stated before a bench of Justices M.R. Shah and M.M. Sundresh that Sub-section 2A of Section 252 of the Income Tax Act prescribed a minimum experience of 10 years in the practise of accounting for its members. "When the Act says ten years, the rules cannot prescribe anything contrary to that," the counsel contended vehemently.

The council also drew the court's attention to the decision in Madras Bar Association v. Union of India, in which the Supreme Court modified a similar provision for judicial members in the Tribunal, Appellate Tribunal, and Other Authorities (Qualification, Experience, and Other Conditions of Service of Members) Rules, 2020, which was later superseded by the 2021 Rules. The counsel for the 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.

Case Title: The Institute of Chartered Accountants of India v. Union of India & Anr. 

Citation: WP (C) No. 626/2021