2009 (3) TMI 1067 - HC - Income Tax

Summary

Issues involved: The judgment involves the appointment of candidates to vacancies in the Income Tax Appellate Tribunal (ITAT) for the positions of Judicial Member (JM) and Accountant Member (AM) in the unreserved category.

Judgment Details:

Issue 1: Vacancies for JM/UR and AM/UR
- The Union of India challenged an order by the Central Administrative Tribunal regarding the appointment of an advocate and two Chartered Accountants to the ITAT.
- The Selection Board recommended candidates for the vacancies, including wait-listed candidates.
- Unexpected vacancies arose for JM/UR and AM/UR positions due to resignations and declined offers.
- The Union of India failed to appoint the candidates recommended by the Selection Board, leading to the dispute.

Issue 2: Legality of Appointment
- The candidates argued that there were clear vacancies for AM/UR positions as only three out of five were filled.
- The Union of India's failure to appoint the candidates was deemed illegal and arbitrary.
- The Additional Solicitor General contended that waitlisted candidates do not have a right to appointment, citing legal precedents.

Issue 3: Legal Precedents and Reasonable Explanation
- Legal precedents were cited regarding the appointment of candidates from waitlists and merit lists.
- The Supreme Court emphasized the need for a reasonable basis for not filling vacancies.
- The Union of India's explanation for not filling vacancies based on proposed rule amendments was deemed unreasonable.
- The judgment highlighted the importance of respecting Selection Board recommendations and reducing backlog in the ITAT for public interest.

Conclusion:
- The Tribunal's order was upheld, directing the Union of India to process the appointment of the candidates to the respective vacancies within a specified timeframe.
- The writ petitions were dismissed with no costs awarded.