Supreme Court Clears Way for CAs to Join ITAT without 25-Year Experience Rule
Top Court Says Long Experience Requirement Was Unreasonable
Decision Expected to Ease Pendency and Strengthen Tribunal Staffing
By Our Legal Reporter
New Delhi: November 20, 2025:
The Supreme Court of India has delivered a significant judgment that will make it easier for qualified Chartered Accountants (CAs) to be appointed as Technical Members of the Income Tax Appellate Tribunal (ITAT). In a ruling that could reshape the functioning of one of India’s most crucial tax dispute bodies, the Court held that CAs do not need to complete 25 years of experience to be eligible for the post.
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This decision comes at a time when several benches of the ITAT are struggling with vacancies, causing delays in tax appeal hearings across the country. The ruling is expected to open the door for a wider pool of highly skilled professionals and improve the speed and quality of tax justice delivery.
### Background: Why the Rule Was Challenged
The challenge before the Supreme Court revolved around a specific provision introduced through the 2023 Tribunal Reforms rules. These rules increased the minimum experience requirement for CAs from 10 years to 25 years to qualify as Technical Members of the ITAT.
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Multiple petitioners argued that the 25-year requirement unfairly shut out a large number of competent CAs. They pointed out that CAs often begin practice at a young age and can gain considerable expertise much earlier. Increasing the threshold to 25 years meant many capable professionals would be excluded despite having deep understanding of tax laws, audits, assessments, and financial practices.
The petitioners also highlighted that historically, a 10-year experience requirement had been considered adequate for these positions.
### What the Supreme Court Said
A bench of the Supreme Court agreed with the petitioners, observing that the 25-year requirement was excessive, arbitrary, and not based on any rational criteria. The Court noted:
- A CA with 10 to 15 years of active practice often handles complex tax matters daily.
- Many CAs have extensive exposure to assessments, appeals, and litigation support.
- The ITAT requires members with strong analytical and financial skills – qualities not tied to a 25-year timeline.
The Court further stated that imposing an unnecessarily long experience requirement narrows the talent pool and affects the functioning of the tribunal. It reiterated that tribunals must attract the best professionals from diverse backgrounds to maintain public confidence.
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As a result, the top court struck down the 25-year rule and restored the earlier, more reasonable standard for eligibility.
### Why This Matters for India’s Tax System
The ITAT plays a central role in resolving tax disputes between taxpayers and the Income Tax Department. It is known for its efficiency, expertise, and independence. However, over the past few years, a rising number of vacancies has slowed its functioning.
Here are the key implications of the Supreme Court’s ruling:
- Faster Disposal of Cases
Many ITAT benches have a large backlog, especially in major cities like Mumbai, Delhi, Bengaluru, Kolkata, and Chennai. Allowing more CAs to qualify will help fill vacancies promptly. This is likely to reduce pendency and speed up case disposal. - Larger Talent Pool
CAs with 10–15 years of experience often handles hundreds of tax cases. Their practical knowledge of assessments, appeals, transfer pricing, audits, and corporate taxation is invaluable. The decision ensures that this rich talent pool is not blocked by an unusually high experience requirement. - Balanced Representation
The ITAT generally consists of both Judicial Members and Technical Members. Judicial Members are usually experienced judges or lawyers, while Technical Members bring financial and accounting expertise. The ruling ensures that the tribunal maintains a balanced composition by allowing more qualified CAs to contribute. - Encouragement for Young Professionals
The judgment sends a strong message that the system values competence over seniority alone. This will encourage young and mid-career professionals to aspire to judicial and quasi-judicial roles.
### Impact on Taxpayers and Businesses
For taxpayers, especially businesses engaged in complex tax planning and compliance, the decision brings hope for faster and more accurate dispute resolution. Timely disposal of cases helps reduce legal uncertainty and supports better financial planning.
Small and medium enterprises (SMEs), which often face challenges during tax assessments, may particularly benefit from a stronger and more efficient ITAT structure.
### Legal Community Welcomes the Decision
Tax lawyers and accounting professionals have widely welcomed the Supreme Court’s judgment. Many experts say the ruling restores the original intent of the tribunal system — to ensure that subject-matter experts play a direct role in resolving disputes.
Several industry bodies and CA associations have also expressed satisfaction, noting that the decision will help ensure that the ITAT continues to be one of the most respected tax tribunals worldwide.
### Looking Ahead
The Supreme Court’s decision marks a major step toward strengthening India’s tribunal system. By removing an unreasonable rule, the Court has ensured that only merit and expertise — not prolonged years alone — determine who is eligible to serve on the ITAT.
As new appointments begin under the revised criteria, taxpayers and professionals can expect smoother operations, reduced pendency, and more efficient tax dispute resolution across India.
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