Delhi Tax Bar Association Vs Union of India & Anr. (Delhi High Court)
The Delhi Tax Bar Association filed a writ petition challenging the Office Memorandum dated 12.09.2025 issued by the Central Board of Direct Taxes (CBDT), which clarified the treatment of allowances payable to High Court Judges under Section 22D of the High Court Judges (Salaries and Conditions of Service) Act, 1954 in the context of Section 115BAC of the Income-tax Act, 1961 (Section 202 of the Income Tax Act, 2025).
At the outset, senior counsel for the petitioner explained that the association’s members file income-tax returns of Judges of the High Courts and the Supreme Court, advise them on tax and investment matters, and are concerned with the dignity and independence of the judiciary.
Before hearing the matter, the Bench disclosed that one member of the Bench had already filed his income-tax return under the new tax regime without claiming exemption for the disputed allowances, while the other member intended to file his return under the old regime so that the issue would not personally affect or influence the decision.
The petitioner submitted that Section 22D of the High Court Judges (Salaries and Conditions of Service) Act, 1954 and Section 23D of the Supreme Court Judges (Salaries and Conditions of Service) Act, 1958 provide that, notwithstanding the Income-tax Act, the value of rent-free official residence, conveyance facilities, sumptuary allowance and leave travel concession provided to High Court and Supreme Court Judges shall not be included in the computation of income chargeable under the head “Salaries” under Section 15 of the Income-tax Act.
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