Breaking News for CA-Important Clarification for CA’s by CJI

Breaking News for CAs—Important Clarification for CA’s by CJIThe Supreme Court explicitly clarified Chartered Accountants do NOT need 25 years’ experience to become Technical Members of tribunals like the Income Tax Appellate Tribunal (ITAT). This ruling upholds the principles of merit and fairness while protecting the independence of tribunals from executive overreach. Stay tuned for more updates on this transformative judgment!

Background in the matter Madras Bar Association v. Union of India & Anr. Under the bench of CJI B.R. Gavai & Justice K. Vinod Chandran

The Tribunal Reforms Act, 2021 was challenged as unconstitutional. The petitioners argued that The Act reintroduced provisions earlier struck down in MBA I–V and Rojer Mathew. It violated judicial independence, separation of powers, and binding directions issued under Article 141.

Key constitutional issues are mentioned here under “Can Parliament reenact provisions previously struck down by the Supreme Court?, include the question like are the age limit (minimum 50), tenure (4 years), and SCSC structure valid?” Also, does the act “cure the defects,” or is it an unconstitutional legislative override?

• Findings of the Supreme Court : Parliament cannot override judicial decisions Judicial review is part of the basic structure. Parliament is not sovereign and must stay within constitutional limits & The Act attempted to undo Supreme Court directions, which is impermissible.
• Tribunal Reforms Act, 2021 = Impermissible Legislative Override : The Court held that The Act repeats provisions already struck down Minimum age 50 years, Four-year tenure, Two-name panel system, & Allowances linked to civil services, No defects were cured, Instead, the law defied binding precedent and weakened tribunal independence.
• Violation of Judicial Independence: The Court observed Short tenure & age bars discourage meritorious candidates, Executive dominance in selection persists, The structure undermines separation of powers, Judicial independence is not a “policy preference” it is a constitutional mandate.
• Provisions Struck Down : The Court invalidated Section 3(1): Minimum age of 50, Section 3(7): 2-name panel, Section 5: 4-year tenure, Section 7(1): Civil-service based conditions of service, Associated amendments in multiple tribunal statutes. The Supreme Court explicitly clarified Chartered Accountants do NOT need 25 years’ experience to become Technical Members of tribunals like the Income Tax Appellate Tribunal (ITAT).

Significance Impact of the Judgment- Important Clarification for Chartered Accountants

• Reinforces constitutional supremacy over legislative/executive action; Protects tribunal independence as part of the Basic Structure; Warns Government against repetitive legislative defiance; Restores merit-based appointments, including Chartered Accountants, lawyers, experts.
• The Court held that a 25-year bar is arbitrary and unjustified. Eligibility should be judged on real expertise, not age seniority. The rule blocked younger, competent Chartered Accountants, undermining tribunal quality. Supreme Court Judgment under the Case Madras Bar Association v. Union of India & Anr. Under the bench of CJI B.R. Gavai & Justice K. Vinod Chandran
• Clarifying its landmark decision in the Madras Bar Association case, which struck down the Tribunal Reforms Act, 2021, the Supreme Court yesterday held that Chartered Accountants DO NOT NEED to hold a minimum of 25 years of experience to be considered as technical members in Tribunals like the Income Tax Appellate Tribunal. This Judgment Opens opportunities for skilled and younger Chartered Accountants. Reduces executive overreach in controlling tribunal appointments. Strengthens tribunal independence, competency, and diversity.
• The Court emphasized that imposing a rigid 25-year experience bar is arbitrary and unjustified. Instead, eligibility should be based on actual expertise, knowledge, and relevant experience. This decision restores opportunities for younger and capable Chartered Accountants to serve as technical members in tribunals, strengthening judicial independence and the quality of adjudication.