Allahabad High Court Judge Takes Legal Action Over Tax Exemption Denial Under New Regime
Prayagraj: Justice Sandeep Jain, a sitting judge of the Allahabad High Court, has filed a writ petition in the same court challenging the denial of exemptions for statutory allowances under the new tax regime. The petition questions whether judges who opt for the new tax regime can still claim benefits under Section 22D of the High Court Judges (Salaries and Conditions of Service) Act, 1954.
On July 22, 2025, a two-judge bench comprising Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi heard the matter and directed the state government to respond. The next hearing is scheduled for July 28, 2025.
Section 22D of the Act exempts from income tax the value of a high court judge's official residence, conveyance facilities, sumptuary allowance, and leave travel concession. Justice Jain's petition argues that this statutory exemption should be available regardless of the tax regime chosen.
According to the petition, when Justice Jain attempted to file his Income Tax Return (ITR-2) for the financial year 2025-26 under the new tax regime, the income tax portal did not permit him to claim an exemption of Rs 9.85 lakh towards statutory judicial allowances. The portal indicated that the benefit was available only under the old tax regime.
Following this, Justice Jain made representations to the Central Board of Direct Taxes (CBDT) and Union Finance Minister Nirmala Sitharaman. In response, he received a communication referring to the CBDT Office Memorandum dated September 12, 2025. The memorandum states that taxpayers opting for the new tax regime cannot claim such exemptions because the regime already provides liberal tax slabs, lower tax rates, and higher rebates. Granting the exemption in addition, it argues, would amount to extending a double benefit.
The case raises questions about the interpretation of tax laws and the rights of constitutional functionaries. The court's decision could have implications for other high court judges and public servants in similar situations.
