The Income Tax Appellate Tribunal was constituted by the Income Tax (Amendment) Act of 1941, and formally inaugurated on 25th January 1941.

The purpose of its formation was to impart Nishpaksh (impartial), Sulabh (simple) and Satvar (swift) justice in the myriad of tax cases arising out of peculiarities of different financial transactions and dynamics of market forces, and rapid evolution of human affairs and its activities in the 20th century, necessarily involving complex tax rules and often contrary rulings.

Over the years the Income Tax Appellate Tribunal evolved into a robust institution effectively serving its objectives.

Dr. Sarvapalli Radhakrishnan, our second President and a globally renowned scholar, summed its utility thus "The Tribunal, in the 25 years of its existence, has earned unstinted praise for the independence of its decisions; and in its fervent desire to do justice it has won the well merited confidence of the public."

The Bar, being stakeholders and managers of the Tribunal, organized itself as an association in Delhi, much later, on 11th April, 1979. Among its objects were desire to promote knowledge of tax laws and free exchange of views and discussions thereon.

Over the last more than four decades, the ITAT Bar Association has produced from its ranks a plethora of distinguished advocates and chartered accountants adorning the highest seats of the judiciary, including at the Honorable Supreme Court of India and High Courts across the country.