The dispute arose from a September 12, 2025 Workplace Memorandum issued by the Central Board of Direct Taxes (CBDT) regarding allowances paid to judges.
In response to the Delhi Tax Bar Affiliation, the memorandum stated that judges choosing the brand new income-tax regime can not declare the tax profit regarding rent-free official lodging, conveyance amenities, sumptuary allowance and depart journey concession. The CBDT’s place was that the brand new regime supplies reasonable tax charges with out deductions and exemptions.
The Affiliation challenged the memorandum earlier than the Delhi Excessive Courtroom. It argued that these allowances are usually not deductions or exemptions within the typical sense.
Part 22D of the Excessive Courtroom Judges (Salaries and Circumstances of Service) Act, 1954 and Part 23D of the Supreme Courtroom Judges (Salaries and Circumstances of Service) Act, 1958 particularly exclude them from the computation of wage earnings, the Affiliation submitted.
