In the year 2001, CBDT created a large number of Gr-A posts due to a comprehensive CR while creating such posts it was also decided that all the posts sanctioned would be filled through promotions from the feeder grade. Consequently by a detailed order dated 31.08.2001, a one time relaxation of the quota rule under rule 7(2) of the IRS Rules 1988 was given as per the terms of the power given under Rules 15. Therefore there was a diversion of the quota of the DR to that of the promotees and as a result of the said relaxation 993 vacancies of 2000-01 and 2001-02 in the grade of ACIT in IRS were filled up by promotions from ITOs. The Principal Bench of CAT in OA No. 1052/2010 held that even though there was relaxation of quota rules, however there was no relaxation of the Rota Rules. CAT held that rota rule or seniority rule can not be relaxed under the provision of RR.
The CAT, Ahmadabad vide OA No. 524/1998 titled as Prabhakant & others vrs. UOI held that relaxation with regard to quota Rules was justified but there is no provision in RR to relax the rota or seniority rule. High Court of Gujurat in the judgement dated 16.08.2001 , while up holding the above decision of CAT , held that power of relaxation of quota rule is exercised in light of necessity or expediency, however higher seniority can not be given violating the seniority guidelines relaxing any provision of Recruitment Rules and generally there in no provision in any recruitment rule for relaxation of rule of seniority. .