Supreme Court Puts Chartered Accountants on Par with Advocates for ITAT Appointments
Court Strikes Down 25-Year Experience Rule, says 10 Years Enough for CAs to Qualify
Judgment Expands Talent Pool for Tribunals, Strengthens Technical Expertise in Tax Justice
By Our Legal Correspondent
New Delhi: November 23, 2025:
In a landmark judgment delivered on November 20, 2025, the Supreme Court of India ruled that Chartered Accountants (CAs) must be treated on par with Advocates for appointments as Accountant Members of the Income Tax Appellate Tribunal (ITAT). The Court struck down as unconstitutional the earlier requirement that mandated 25 years of professional experience for CAs, holding instead that 10 years of practice is sufficient, the same threshold applied to Advocates seeking appointment as Judicial Members.
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This ruling is expected to reshape the composition of the ITAT, India’s premier tax dispute resolution body, and open doors for younger professionals to contribute to the justice delivery system.
Background of the Case
The matter was brought before the Court by the Madras Bar Association and the Institute of Chartered Accountants of India (ICAI), who argued that the 25-year requirement was arbitrary and discriminatory. They pointed out that Advocates with 10 years of practice were eligible for ITAT appointments, while CAs had to wait much longer, despite their specialized expertise in taxation and accounting.
The Bench comprising Chief Justice of India B.R. Gavai and Justice K. Vinod Chandran agreed with the petitioners, noting that the earlier rule created an unnecessary barrier for mid-career CAs. The Court observed that it had already struck down a similar requirement for Advocates and saw “no difficulty in applying the same analogy to Chartered Accountants.”
Court’s Observations
The Supreme Court made several key observations:
- Equality of professions: CAs and Advocates both play critical roles in tax adjudication, and their eligibility criteria must be aligned.
- Unconstitutional requirement: The 25-year experience threshold for CAs was declared invalid and unconstitutional.
- 10-year practice rule: Just like Advocates, CAs with 10 years of professional experience are now eligible for ITAT appointments.
- Directive to Centre: The Court directed the Union Government to factor in these findings while framing new laws on tribunal appointments.
The ruling was also incorporated into a broader judgment that struck down the minimum age bar of 50 years and the four-year truncated tenure for tribunal members under the Tribunal Reforms Act, 2021.
Reactions from the Profession
The decision was widely welcomed by the Chartered Accountancy community.
- ICAI President Charanjot Singh Nanda hailed the ruling as “appropriate recognition” of the profession, noting that it aligns with global best practices. He said, “Recognising 10 years’ experience as the qualifying threshold ensures that capable professionals can contribute to justice delivery at their professional peak.”
- Ankit Jain, Partner at Ved Jain & Associates, described the ruling as “levelling the playing field” and removing an age-linked barrier that had unfairly excluded mid-career CAs.
- Ritika Nayyar, Tax Partner at Singhania & Co, called the 25-year threshold “outdated” and said the ruling would broaden the tribunal’s talent base.
- B. Shravanth Shanker, Advocate-on-Record, noted that the judgment removes an “unnecessary obstacle” and will improve the tribunal’s pace, consistency, and quality.
Broader Context: ITAT and Tribunal Reforms
The Income Tax Appellate Tribunal (ITAT) is India’s highest fact-finding authority in tax disputes, playing a crucial role in resolving cases between taxpayers and the Revenue Department. Traditionally, it has had two types of members: Judicial Members (Advocates) and Accountant Members (CAs or other experts).
The earlier requirement of 25 years’ experience for CAs had been criticized as discriminatory and impractical, especially since Advocates needed only 10 years of practice. The Supreme Court’s ruling now ensures parity and expands the pool of eligible candidates.
This judgment also ties into broader reforms in tribunal appointments. The Court has consistently struck down provisions of the Tribunal Reforms Act, 2021 that imposed restrictive eligibility criteria, short tenures, and age bars. By doing so, it has reinforced the principle that tribunals must attract the best talent across professions.
Implications of the Ruling
The Supreme Court’s decision has several important implications:
- Expanded talent pool: Younger CAs with 10 years of experience can now apply, bringing fresh perspectives and technical expertise.
- Strengthened technical capacity: CAs bring specialized knowledge in accounting, taxation, and financial scrutiny, which is central to ITAT’s functioning.
- Parity with Advocates: The ruling ensures fairness by aligning eligibility criteria across professions.
- Potential reforms in GST tribunals: Experts believe the judgment could pave the way for similar reforms in the Goods and Services Tax Appellate Tribunal (GSTAT), which currently excludes CAs.
- Ease of doing business: Faster and more consistent tribunal decisions will improve India’s tax dispute resolution framework, boosting investor confidence.
Expert Analysis
Legal and tax experts see this ruling as a progressive step. It recognizes the evolving role of CAs in India’s tax ecosystem and ensures that tribunals benefit from their expertise. By striking down outdated eligibility rules, the Court has reaffirmed its commitment to merit-based appointments.
The decision also reflects a broader judicial trend of removing arbitrary barriers in professional appointments, ensuring that institutions remain inclusive and efficient.
Conclusion
The Supreme Court’s ruling that Chartered Accountants must be treated on par with Advocates for ITAT appointments marks a turning point in India’s tax jurisprudence. By striking down the 25-year experience requirement and recognizing 10 years of practice as sufficient, the Court has ensured fairness, expanded opportunities, and strengthened the technical capacity of tribunals.
For CAs, this is not just a victory for professional recognition but also a chance to contribute meaningfully to India’s justice delivery system. For taxpayers and businesses, it promises faster, more consistent, and technically sound resolutions of tax disputes.
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