The Hindu Business Line : SC upholds judicial autonomy of ITAT

IN a recent landmark judgment, the Supreme Court, while upholding the judicial autonomy of the Income Tax Appellate Tribunal (ITAT), has quashed the notification issued by the Union Government taking away the powers of the ITAT President to transfer its members.

The apex court held that the "functions of a tribunal being judicial in nature, the public have a major stake in its functioning, for effective and orderly administration of justice".

The apex court has also laid down a set of broad new guidelines for such transfers/postings. It heard the matter in a public interest litigation (PIL) petition filed by the ITAT Bar Association.

The apex court, in its verdict, said: "The Appellate Tribunal is a National Tribunal. The President, subject to delegation of powers to Senior Vice-President or Vice-President, exercises administrative control over the members thereof. It has been clearly stated that the Benches are to be constituted only by the President, and no other authority is empowered to do so."

The new guidelines are:

Initial posting of a member shall be done by the Government in consultation with the ITAT President.

Postings to different Benches shall be done strictly adhering to certain conditions.

The President shall keep the Government informed about the orders of posting.

The Government shall have further liberty to request the President to transfer a member from a particular Bench when it is in public interest or in exceptional circumstances.

As per the earlier suggested guidelines of the Government, upon appointment of a member, his initial posting will be done by the Government in consultation with the President, with regard to the following: A member shall not be given initial posting at a place where he was earlier practicing as an advocate or chartered accountant in taxation matters, and that he shall not be posted at a place where his spouse, son, daughter, grandson or grand-daughter is practicing either as an advocate or CA in taxation matters.

The petitioners did not agree to these suggestions.

While a cross-section of tax experts, including the President of All-India Federation of Tax Practitioners, Mumbai, Mr K. Shivram, have welcomed the new guidelines, some have suggested a more integrated approach, pointing out that in the case of High Court judges, an advocate practising in a court can emerge as Judge of the same court.

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