ITAT tribunal has judicial and accounting members. The Income tax act, of 1961 states that the advocate with ten years of experience is eligible for appointment as a judicial member. Recently, the rules about judicial members were subject to change. And changes made to recruitment. Advocates with 25 years of experience are eligible to become a judicial members. Recently, the tribunal rules 2021 declare that accounting members need twenty-five years of experience. ICAI has posed the argument about the age factor. The age of a chartered accountant starting the service ranges from 22 to 25 years. In this case, the chartered accountant joining the ITAT as a member would be 50 years of age. After 25 years of vast experience, the professionals have fewer years of service to work in the ITAT tribunal.
The blog provides insight into the bench of justice, beginner-level chartered accountant’s knowledge and the value of twenty-five years’ service, and ten years’ service as a chartered accountant. The experience makes the difference. The chartered accountants chose the path and profile after gaining practical experience. The chartered accountant with experience gets a high-level salary. They hold high positions in companies. They are candidates for working as an accounting member in ITAT.
Bench of Justice
Indian constitution is with the structure of separation of power and judiciary system. In 2020, the Supreme Court commented on section 184 of the finance act, 2017. The new rule after discussion says that the president should be a judicial member, and the vice president can be an accounting member or judicial member. The search cum selection committee decide the suitable candidate with mindfulness. The tribunal rules of 2021 say that the accountant member is appointed with twenty-five years of service. Justice M.R.Shah and M.M.Sundresh, senior advocate amicus suriae Arvind Datar argued, at the age of fifty, the competency would be comparatively less. The counsel from ICAI also supported the fact. At the age of fifty, taking responsibility is a debatable one.
Knowledge of a beginner-level chartered accountant:
Before analysing the experience, let us shed light on the candidate without experience. This analysis is to understand the difference that comes from experience. The student knows tax planning, auditing, risk element, business operations, financial statements and client value. The beginner-level chartered accountant has the following skills:
• The student understands business operations and dynamic finance positions.
• The student understands the value of client acquisition and goodwill.
• The student understands the risk element in the auditing process.
• The student understands the importance of tax planning and auditing.
• The student knows how to prepare monthly and annual financial statements.
Value of twenty-five years of service:
After gaining twenty-five years of experience, the skills of the professional are focused towards the profession. The following points explain the skills of a chartered accountant having experience:
Knowledge about regulations:
The chartered accountant needs to know the regulatory bodies. The regulatory bodies CBDT (central board of direct taxation), SEBI securities and exchange board of India), and MCA (ministry of corporate affairs) make amendments as per the market integrity and investor security.
Technical knowledge:
Chartered accountants get experience in small and large industries. The small-scale sector use accounting software that eases operations. Chartered accountants understand the software that supports the accounting system of different sectors after gaining experience.
Quality standards:
Chartered accountants understand the financial statements, legal environment, investment market, tax and regulatory system after gaining experience. He insists on better standards for the commercial environment.
Professional ethics:
Chartered accountants with twenty-five years of experience understand professional ethics. The importance of people’s trust and faith makes the professional perfect.
Strategic management:
Strategic management is the skill that comes with designing documents and data with vast volumes. A chartered accountant understands the importance of planning and designing after gaining experience.
Research skills:
After solving business problems, chartered accountants acquire research skills. Chartered accountants provide audit reports based on the analysis and evidence. They understand the quality standards and research to improve their skills.
Negotiation skills:
The candidate understands the client’s requirements and makes them understand the auditing viewpoint. They have good negotiation skills from their experience.
Value of ten years of service:
After gaining ten years of service, the chartered accountant become an entrepreneur. The following points explain the skills briefly.
Time management:
Chartered accountants with ten years of experience understand the time value. The work plans and targets are based on time availability.
Decision making: Chartered accountants with ten years of experience have exposure to multiple projects. So, they are flexible in taking on new work and challenges.
Communication skills:
Chartered accountants with ten years of experience understand clients and investments better. They communicate with different sets of people and make them understand evidence-based analysis.
Analytical skills:
The analytical skills of chartered accountants help them to understand market trends. They provide apt financial advice to the clients.
Conclusion:
According to experience, the profile of a Chartered accountant changes. Ten years of experience is enough to start an audit firm. The professional challenges are known after gaining ten years of experience. Twenty-five years of experience initiating research skills to professionals. To be an accounting member of ITAT, the knowledge of operations and challenges is enough. The judgemental attitude comes from ten years of experience. Twenty years of experience provide the problem-solving skill to find the answer to complex issues.
