In a strong observation on judicial efficiency and the pressing need for systemic reform, Chief Justice of India (CJI) B.R. Gavai on Wednesday expressed concern over the massive pendency of Rs 6.85 lakh crore worth of disputes pending before the Income Tax Appellate Tribunal (ITAT).
Speaking at a symposium titled "Income Tax Appellate Tribunal (ITAT) - Role, Challenges and Way Forward" and a felicitation ceremony, the CJI termed pendency a "major problem" plaguing both courts and tribunals across India.
"A major problem, as is with the courts as well as the other tribunals is with regard to huge pendency. I am happy to note that in the last five years, ITAT has brought down its pendency from 85,000 to 24,000. However, still matters involving disputes of Rs 6.85 lakh crore - more than 2% of India's GDP - remain pending before the Tribunal,"- CJI B.R. Gavai
Praises for ITAT's Progress
Justice Gavai commended the ITAT and its members for their consistent efforts in reducing the case backlog significantly, crediting both the bench and the bar for this "remarkable achievement."
He also lauded ITAT's contribution to the justice delivery system, noting that its timely and well-reasoned decisions form a crucial part of the country's judicial and financial framework.
"The ITAT continues to navigate the intricate interplay between law and finance while delivering timely and informed decisions. Its work provides a vital layer of scrutiny that supports the broader judicial system,"- CJI Gavai
Call for Comprehensive Reforms
Emphasizing the importance of institutional reform, the CJI called for an integrated approach to improving the ITAT's functioning through better appointments, training, technology adoption, and case management.
"Reform should address the issues of appointments, tenure, training, case management and technology as interconnected components of an institutional ecosystem, rather than treating them as isolated policy measures," he said.
Justice Gavai stressed the need for transparent appointment procedures, noting that the credibility of tribunals depends on public confidence in objective and merit-based selection.
"Appointment procedures at ITAT must remain transparent. The credibility of a tribunal fundamentally relies on public confidence that its members are selected according to objective standards rather than transient administrative convenience," he said.
Referring humorously to the minimum entry age for ITAT members being 50 years, the CJI remarked,
"The law has kept the minimum entry at 50 for the ITAT member. I became a High Court judge at the age of 42."
He proposed tenure structures that allow members to develop long-term expertise and encouraged the recruitment of senior practitioners early enough in their careers to leverage their professional experience effectively.
Addressing Inconsistencies and Structural Challenges
Justice Gavai identified inconsistent rulings as another pressing concern, warning that such discrepancies could erode public trust in the legal system.
"When courts and tribunals provide consistent, reasoned and predictable decisions, the law becomes a stable framework within which citizens can exercise their rights confidently. Conversely, contradictory opinions can erode the authority of the legal system," he cautioned.
To mitigate this, the CJI proposed the early identification of conflicting judgments through special benches and internal reference mechanisms to maintain consistency in rulings.
He also highlighted the need for systematic induction and continuous education programmes for tribunal members, along with stable secretariat support, adequate registry staff, and greater administrative control to ensure smooth judicial operations.
Dignitaries in Attendance
The symposium was attended by Law Minister Arjun Ram Meghwal and ITAT President Justice C.V. Bhadang, among other senior officials and members of the tax bar.
Justice Gavai concluded his address by emphasizing the dual responsibility of celebrating ITAT's achievements while also confronting its challenges head-on.
"We must examine the ITAT with gratitude for its achievements and with a critical willingness to address its structural challenges," he said.
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