Chief Justice Gavai Addresses Rs 6.85 Lakh Crore Case Backlog at ITAT: Calls for Comprehensive Judicial Reforms

Chief Justice of India B R Gavai has identified significant case backlogs as a "major problem" affecting the judicial system, highlighting that disputes involving Rs 6.85 lakh crore remain pending before the Income Tax Appellate Tribunal (ITAT).

Speaking at a symposium titled 'Income Tax Appellate Tribunal -- Role, Challenges and Way Forward' in New Delhi, Justice Gavai acknowledged ITAT's remarkable progress in reducing pending cases from 85,000 to 24,000 over the last five years.

"A major problem as is with the courts as well as the other tribunals is with regard to huge pendency. I must congratulate all the members of the ITAT as well as the members of the Bar because without their cooperation, achieving such a great accomplishment would not have been possible," the CJI remarked.

Despite this improvement, Justice Gavai noted that matters involving disputes of Rs 6.85 lakh crore, exceeding 2 percent of India's GDP, still await consideration before the Tribunal.

During the event, which was attended by Law Minister Arjun Ram Meghwal and ITAT President Justice C V Bhadang, the Chief Justice commended the Tribunal for its vital contribution to the justice delivery system while advocating for structural and procedural improvements.

"The ITAT continues to navigate the intricate interplay between law and finance while delivering timely and informed decisions," Justice Gavai observed, adding that its work provides essential scrutiny supporting the broader judicial framework.

The CJI emphasized that comprehensive reforms should address appointments, tenure, training, case management, and technology as interconnected components rather than isolated policy measures.

Conflicting rulings were identified as another significant concern, with Justice Gavai warning that inconsistencies in judgments could undermine public trust and legal certainty.

"When courts and tribunals provide consistent, reasoned and predictable decisions, the law becomes a stable framework within which citizens can exercise their rights and duties confidently. Conversely, inconsistent opinions can erode the authority of the legal system, particularly in specialized fields like Income Tax," he explained.

Justice Gavai called for transparent appointment procedures to maintain the tribunal's credibility, noting that public confidence depends on objective selection standards. He remarked to the Law Minister that while the minimum entry age for ITAT members is set at 50, he became a high court judge at 42.

The Chief Justice recommended tenure structures allowing members to develop expertise, suggesting that eligibility criteria should attract experienced practitioners at optimal points in their careers rather than near retirement.

He advocated for systematic training programs to enhance adjudicatory skills, mechanisms for early identification of conflicting decisions through special benches, and stable administrative support with adequate staffing to prevent disruptions in judicial operations.

Justice Gavai's comprehensive vision for reform underscores the need for modernization and strengthening of the ITAT to enhance its efficiency and institutional credibility in addressing the substantial backlog of cases.