There is a few things we should distinguish here:
1./ The sound quality output from the D/A converter of an MD device vs. the sound quality of the same audio material recorded via ATRAC, on the same device
ATRAC is a lossy audio format by design, and even being technically superior to other lossy formats, still there can be audible differences to the original audio, plus there is a significant "subjectiveness" factor.
2./ Tidal offers different audio quality options
Only the highest one ("Master") has better than CD quality. Recording to MD from such 24 bit master files should yes, sound theoretically better than recording to MD from a CD quality source.
Their second best option ("HiFi") is exactly the CD quality, and the remaining two ("High" and "Normal") are lossy, so these are probably out of question in this context.