A sitting judge of the Allahabad High Court has filed a petition challenging the denial of tax exemption on statutory allowances under the new tax regime. The plea seeks judicial review of the decision denying the exemption available on such allowances.
A Bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi directed the Union government and the Central Board of Direct Taxes (CBDT) to respond to the petition moved by Justice Sandeep Jain. The Court listed the case for further hearing on July 28.
Justice Jain has contested an Office Memorandum (OM) issued in September 2025 by the Income Tax Department that refuses the statutory benefit of exemptions u/s 22D of the High Court Judges (Salaries & Conditions of Service) Act, 1954, to those opting for the next tax regime under the Income Tax Act.
The judge had asked for the exemption for sumptuary allowance and house rent allowance obtained by him as a component of his salary. The income tax authorities had not granted the claim for over ₹9 lakh.
Concerning his petition before the court, he said that the OM is prima facie arbitrary, unjust, and unlawful. Therefore, he has requested to set aside the OM and direct the authorities to authorise him to claim exemption for the allowances.
Justice Jain has been represented by the Senior Advocate Nipun Singh with advocate Naman Agarwal.
| Case Title | Justice Sandeep Jain vs. Union of India and 3 Others |
| Case No. | Writ Tax (WTAX)-[3129/2026] |
| For Petitioner | Justice Sandeep Jain |
| For Respondent | Union of India and 3 Others |
| Allahabad High Court | Read Order |
