Income-tax Act, 1961 | Appellate Tribunal

Section 252A: Qualifications and Service Conditions of ITAT President, Vice-President and Members

Section 252A connects the appointment and service conditions of the leadership and members of the Income Tax Appellate Tribunal (ITAT) to the statutory framework introduced by the Finance Act, 2017. It also contains a saving provision for appointments made before that framework commenced.

Legal context: Tribunal appointment and service conditions have been affected by subsequent legislation, rules and court decisions. Section 252A should be read together with the applicable version of section 184 of the Finance Act, 2017 and later tribunal-reform provisions, rather than in isolation.

What is Section 252A of the Income-tax Act?

Section 252A addresses the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other conditions of service of the President, Vice-President and other members of the ITAT. The ITAT is the specialist appellate body constituted under section 252 to hear specified income-tax appeals.

Section 252A: Explanation of the statutory provision

Main rule: Notwithstanding other provisions of the Income-tax Act, 1961, the qualifications, appointment, tenure, remuneration, resignation, removal and other service conditions of the ITAT President, Vice-President and Members appointed after commencement of Part XIV of Chapter VI of the Finance Act, 2017 are governed by section 184 of that Finance Act.

Proviso: A President, Vice-President or Member appointed before that commencement continues to be governed by the Income-tax Act, 1961 and rules made under it, as though section 184 of the Finance Act, 2017 had not come into force, subject to later applicable law and judicial rulings.

1. Non-obstante clause

The words notwithstanding anything contained in this Act give the cross-reference priority over inconsistent provisions of the Income-tax Act, 1961 for the appointments covered by section 252A. They do not remove the need to consider later enactments and binding judicial decisions.

2. Appointments covered

The main clause concerns persons appointed after the commencement of the specified part of the Finance Act, 2017. The proviso preserves a distinct regime for earlier appointees. The applicable appointment date and governing statutory provisions therefore matter.

3. Conditions of service

The provision encompasses eligibility and appointment, tenure, pay and allowances, resignation and removal. It does not itself set out a complete schedule of salary figures, age limits or selection procedures; these must be checked against the governing legislation and valid rules applicable to the particular appointment.

Related legislation and tribunal reforms

Section 184 of the Finance Act, 2017: Provides the legislative framework referenced by section 252A for specified tribunal appointments and service conditions. Its operation must be assessed in light of amendments and relevant judgments.

Tribunals Reforms Act, 2021: Made further changes to the statutory framework governing various tribunals. Its applicability and the effect of judicial decisions must be considered when interpreting current service conditions.

Section 252 of the Income-tax Act, 1961: Deals with the constitution of the ITAT and the qualifications of Judicial and Accountant Members. Section 252A should be read alongside it, not as a replacement for every provision concerning the Tribunal.

Sections 253 to 255: Deal respectively with appeals to the ITAT, its orders and its procedure. These provisions concern the Tribunal's appellate work rather than principally the service conditions of its members.

Practical implications

  • Identify whether the appointment falls within the main clause or the saving proviso of section 252A.
  • Check the version of section 184 of the Finance Act, 2017 applicable on the relevant date.
  • Review subsequent statutory amendments, rules and binding court judgments before relying on any particular tenure, eligibility or remuneration condition.
  • Distinguish rules about appointment and service from the Tribunal's jurisdiction and appeal procedures.

Official legal references

For authoritative legislative text and amendments, consult the India Code legislative database, the Income Tax Department, and the Gazette of India. The Income Tax Appellate Tribunal website provides institutional information.

Legislative history: Section 252A was introduced by section 174 of the Finance Act, 2017. This article explains the provision and its broader context; for a particular appointment or dispute, verify the law in force on the relevant date.