All Gujarat Federation of Tax Consultants and ITAT Bar Association Mumbai, have made representations to the Finance Minister Arun Jaitley against the Governments’ move to merge Tribunals.
Part XVI of Chapter VI the Finance Act, 2017 provided amendments to certain Acts to provide for merger of eight autonomous tribunals with other tribunals and conditions of service of chairpersons, members, etc. The Act also gave the government the power to appoint and remove the members in another 17 such bodies. Earlier, the Government had notified Rules regarding the terms of service including appointments, term of office, salaries and allowances, and removal of tribunal members.
Both the representations requested omission of s. 252A of the Income Tax Act which provides for the qualification of the Accounting Member of the ITAT and not to apply the provisions of Part XVI of Chapter VI of the Act to the ITAT. The representation moved by the All Gujarat Federation of Tax Consultants prays for not to change the terms and conditions of the members and to make the retirement age of the Members same as the President of ITAT.
It is stated in the representation that “the present system is transparent and the Chairman of the selection committee being a senior sitting judge of the Supreme Court nominated by the Chief Justice of India is acknowledged as one of the best method of selection of members which has made the Institution proud. All the stakeholders have bestowed confidence in the selection process which is in existence for more than 75 years.”
It said that if the Rules notified on 1st July 2017 is implemented, it would harm the impartial functioning and integrity of the ITAT, which the mother Tribunal of all other Tribunals in the Country.
It was said that “when the present system is working well, there is no need to change the system.”
The representation by the ITAT Bar association Mumbai stated that “The Tribunals constituted under other Acts cannot be compared to the unique position of ITAT. It is, therefore, submitted that the ITAT be excluded from Part XIV of the Finance Act, 2017 and notification No. G.S.R. 514(E) dated 01.06.2017 issued by the Central Government ought not to be made applicable to it.”
Recently, the Madras Bar Association has approached the Madras High Court against the Central Government’s move to merge eight automous tribunals with other Tribunals wherein the Court issued notice to the Government.
Read the full text of the Representation below.
