Allahabad High Court judge challenges denial of tax exemption on statutory allowances under new tax regime

A sitting judge of the Allahabad High Court has filed a petition before the Court challenging the denial of tax exemption on statutory allowances to him under the new tax regime.

A Bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi today asked the Union government and Central Board of Direct Taxes (CBDT) to respond to the petition moved by Justice Sandeep Jain. The Court listed the matter for further hearing on July 28.

Justice Jain has challenged an Office Memorandum (OM) issued in September 2025 by the Income Tax Department that denies the statutory benefit of exemptions under Section 22D of the High Court Judges (Salaries & Conditions of Service) Act, 1954, to those opting for next tax regime under the Income Tax Act.

The judge had sought exemption for sumptuary allowance and house rent allowance received by him as part of his salary. However, the claim for over ₹9 lakh was denied by the income tax authorities.

In his petition before the Court, he has argued that the OM is prima facie arbitrary, unjust and unlawful. Thus, he has prayed for quashing the OM and direction to allow him claim exemption for the allowances.

Senior Advocate Nipun Singh with advocate Naman Agarwal represented Justice Jain.