CJI BR Gavai Calls For Reforms In ITAT Appointments, Members' Tenure; Flags Problem Of Conflicting Judgments

At a symposium on “Income Tax Appellate Tribunal (ITAT) – Role, Challenges and Way Forward” held in New Delhi on October 8, Chief Justice of India B.R. Gavai underscored the vital role of the ITAT in ensuring fairness and consistency in tax adjudication, while stressing the need for structural reforms to enhance its functioning, independence, and public credibility.

The event was attended by Union Law Minister Arjun Ram Meghwal, Delhi High Court Chief Justice Devendra Kumar Upadhyaya, Justice C.V. Bhadang (President, ITAT), Law Secretary Dr. Anju Rathi Rana, and members of the ITAT Bar Association.

“Tax adjudication touches people's lives”

CJI Gavai observed that taxation is not merely a matter of fiscal policy but one that affects the daily lives and livelihoods of citizens. “Tax law is a sphere in which state power touches individual enterprise and livelihood. Its adjudication must embody both legal correctness and humane judgment,” he said. The CJI emphasized that the functioning of ITAT must ensure protection not only of the State's revenue but also of citizens' dignity and trust.

Praises ITAT's contribution, flags concerns over pendency and conflicting rulings

Commending the Tribunal for reducing its pendency from 85,000 cases to 24,000 in five years, the Chief Justice said this achievement reflected the cooperation between the Bench and the Bar. However, he noted that disputes amounting to ₹6.85 lakh crore, which is more than 2 percent of India's GDP, remain pending before the Tribunal.

He also flagged concerns about conflicting decisions across benches, warning that inconsistency undermines the rule of law and public confidence. “When courts and tribunals provide consistent, reasoned, and predictable decisions, the law becomes a stable framework. Inconsistent opinions can erode the authority of the legal system,” he said.

Reform agenda: appointments, tenure, and training

CJI Gavai outlined a broad roadmap for reform, describing it as an “institutional ecosystem” that must address appointments, tenure, training, case management, and technology in a coordinated manner.

He called for transparent appointment procedures to sustain public confidence. “The credibility of a tribunal relies on the belief that its members are selected according to objective standards rather than administrative convenience,” he said, adding that he would refrain from commenting on pending issues related to appointments since they are sub judice.

Emphasizing the need for longer tenures and better eligibility norms, he said continuity helps develop adjudicatory expertise. He suggested that appointments should attract experienced practitioners at the right stage of their careers, not at the tail end.

The Chief Justice also urged investment in systematic capacity-building, including structured induction training, continuing judicial education, and workshops involving members, officers, and the Bar to discuss procedural and substantive challenges.

To address jurisprudential inconsistency, CJI Gavai proposed institutional mechanisms for identifying and resolving conflicting decisions, such as proactively forming special benches and establishing transparent internal reference protocols. These steps, he said, would reduce uncertainty for litigants and ease the burden of higher courts.

Highlighting the importance of administrative support, the CJI said the ITAT must have a stable secretariat, adequate registry support, and control over its infrastructure and staffing to prevent administrative bottlenecks.

He cautioned that reforms must evolve through consultation and dialogue, acknowledging that well-intentioned changes can have unintended consequences. “Where reforms work, they can be scaled; where they don't, they should be adjusted,” he said.

Reflecting on the ITAT's founding vision in 1941, CJI Gavai noted that it was established to blend judicial insight with accounting expertise, a model that remains relevant as tax laws grow more complex. He lauded the Tribunal's legacy of producing jurists who went on to serve in higher courts and for maintaining accessibility and cost-effectiveness.

Concluding his address, CJI Gavai thanked Justice C.V. Bhadang, ITAT Vice President Mahavir Singh, and ITAT Bar Association President Ajay Wadhwa for organizing the event. He reiterated that the Bar and the Bench are “equal stakeholders in the administration of justice,” acknowledging the Bar's indispensable role in maintaining efficiency and integrity in the system.