ITAT chief's powers on postings upheld

MUMBAI: The Supreme Court, in a recent order, has reaffirmed the powers of the president of Income Tax Appellate Tribunal (ITAT), a quasi judicial fact-finding authority that decides on disputes between tax payers and the income-tax department. The apex court has reinstated the ITAT president’s powers to transfer its members which was taken away by the government through a notification issued earlier. The Supreme Court’s order was based on a public interest litigation filed by the ITAT Bar Association, challenging the government’s decision to take over the powers to transfer the members of ITAT, as it felt that the independence of ITAT would be compromised if the government’s notification is not withdrawn.
The court held that since ITAT is a judicial entity it would be inappropriate for the government to decide on the transfers of its members.
However, the apex court gave certain guidelines for transfer of ITAT members. It has suggested that in all fairness the ITAT president should consult with the two vice presidents on matters of postings, as it may be impossible for the president to know the efficiency and other relevant details of the member sought to be transferred. The apex court also suggested to let the government decide the initial posting of members in consultation with the president of ITAT. A member should be posted at a place where he was earlier practising as a lawyer or tax consultant, or at a place where his spouse or children or close relatives, are practising. The guideline also suggested that the president shall keep the government informed about the orders of postings and the government will have the liberty to bring violations to the notice of the president. However, the apex court held that the government has the right to request the president of ITAT to transfer a member from a particular bench when it is in public interest or exceptional circumstances.
In the event of the president declining to comply with the request, it will be upto the government to issue an order of transfer.