Delhi High Court: Judges Must Share PAN for Tax on Allowances Dispute

The Delhi High Court has asked Supreme Court and High Court judges to share their Permanent Account Number (PAN) and other details with the Income Tax Department (IT Department) to ensure that their tax returns are not processed pending a dispute over taxation of judicial allowances.A Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta passed the order on August 10 an application moved by the Income Tax Department seeking modification of an interim order passed on July 22.The Court directed that if a judge’s tax returns have already been processed and a tax demand has been raised, the demand must be kept in abeyance until the petition is decided.The earlier order had permitted judges opting for the new income-tax regime to declare specified allowances as “receipts not in the nature of income”. The Court had directed that returns filed in this manner should not be processed until further orders.Justice Dinesh Mehta and Justice Rajneesh Kumar GuptaThe dispute arose from a September 12, 2025 Office Memorandum issued by the Central Board of Direct Taxes (CBDT) concerning allowances paid to judges.According to the Delhi Tax Bar Association, the memorandum said that judges opting for the new income-tax regime cannot claim the tax benefit relating to rent-free official accommodation, conveyance facilities, sumptuary allowance and leave travel concession. The CBDT’s position was that the new regime provides moderate tax rates without deductions and exemptions.The Associ