The Supreme Court of India has delivered a landmark ruling by striking down the 25-year experience requirement for Chartered Accountants seeking appointment as Accountant/Technical Members of the Income Tax Appellate Tribunal (ITAT). The Court held that the condition is unconstitutional, arbitrary, and violative of the principle of equality.
This judgment is a significant development in tribunal jurisprudence and has far-reaching implications for ITAT appointments, Chartered Accountants, and professional eligibility norms.
Key Highlights of the Supreme Court Judgment
- The 25-year experience requirement for ITAT Chartered Accountant members has been declared unconstitutional
- The rule was found to be arbitrary and discriminatory
- The Supreme Court applied the same reasoning used earlier for advocates in the MBA (IV) judgment
- The Union of India has been directed to ensure future legislation complies with this ruling
Background of the Case
The judgment was delivered in:
- Writ Petition (C) No. 1018 of 2021 – filed by the Madras Bar Association
- Writ Petition (C) No. 626 of 2021 – filed by the Institute of Chartered Accountants of India (ICAI)
The case was heard by a bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran.
The petitions challenged the constitutional validity of mandating 25 years of professional experience for Chartered Accountants to be eligible for appointment as ITAT members.
Arguments Against the 25-Year Experience Requirement
The petitioners argued that the experience condition:
- Was arbitrary and unreasonable
- Effectively made Chartered Accountants eligible only after 50 years of age
- Had already been struck down for advocates in an earlier Supreme Court judgment
- Violated Article 14 of the Constitution of India, which guarantees equality
Supreme Court’s Reasoning
Reliance on Previous Judgments
The Court relied on its earlier ruling in Madras Bar Association (MBA IV), where a similar 25-year experience rule for advocates was held unconstitutional. The bench found no justification for applying a different standard to Chartered Accountants.
“We see no difficulty in applying the same analogy to Chartered Accountants, who are to be appointed as Accountant/Technical Members in the ITAT.”
Unreasonable Age Barrier
The Supreme Court observed that the impugned rule created an artificial age barrier, preventing competent and experienced professionals from being considered during their most productive years. Such a restriction was held to be manifestly arbitrary.
Equal Treatment of Professionals
By extending the same legal principles to Chartered Accountants, the Court reinforced the need for uniform, fair, and reasonable eligibility criteria across similar professional categories.
Directions Issued to the Union of India
The Supreme Court directed that:
- The Union of India must take note of the invalidation of the 25-year experience requirement
- Any future law governing ITAT appointments must align with constitutional principles
- Arbitrary experience-based restrictions must not be reintroduced
Impact of the Judgment
For Chartered Accountants
- Opens ITAT appointments to younger and meritorious Chartered Accountants
- Removes an unreasonable and age-linked eligibility barrier
- Promotes merit-based selection over excessive experience thresholds
For the Income Tax Appellate Tribunal (ITAT)
- Broadens the pool of eligible candidates
- Enables inclusion of professionals with contemporary tax knowledge
- Strengthens the effectiveness of tax adjudication
Legal and Constitutional Significance
- Reinforces judicial scrutiny of tribunal appointment rules
- Establishes that experience requirements must be reasonable and proportionate
- Ensures consistency in constitutional standards across professions
What is the Income Tax Appellate Tribunal (ITAT)?
The Income Tax Appellate Tribunal (ITAT) is a specialized quasi-judicial body that hears appeals against orders passed by income tax authorities. It consists of:
- Judicial Members (advocates or retired judges)
- Accountant/Technical Members (Chartered Accountants and tax professionals)
Given its vital role in India’s tax dispute resolution framework, the qualifications and eligibility criteria for ITAT members are matters of public importance.
Timeline of Events
- November 19, 2025 – Supreme Court delivered the original judgment
- November 20, 2025 – Additional paragraphs added after mention by ICAI counsel
Conclusion
The Supreme Court’s decision to strike down the 25-year experience requirement for ITAT Chartered Accountant members is a major victory for constitutional equality and professional fairness. The ruling ensures that competence, merit, and suitability, rather than excessive years of practice, govern ITAT appointments.
The Union of India must now frame constitutionally valid and balanced eligibility criteria that provide fair access to qualified Chartered Accountants across age groups.
Case Citation: Madras Bar Association v. Union of India & Anr., Writ Petition (C) No. 1018 of 2021, Supreme Court of India, decided on November 20, 2025