New Delhi: Delhi High Court asks Supreme Court and High Court judges to share PAN details as part of an ongoing dispute over the taxability of judicial allowances. The Court has directed private secretaries of judges who have filed income tax returns under the new tax regime to provide specific return details, including PAN information, to the Income Tax Department. The move aims to help tax authorities identify affected returns while the legal challenge remains under consideration.
The case is linked to a petition challenging the taxation of certain judicial allowances available to judges under existing service laws.
Judicial Allowance Tax Dispute: Why Did the Delhi High Court Issue This Direction
The Delhi High Court was hearing an application filed by the Income Tax Department. The department informed the Court that processing income tax returns is done electronically through the Centralised Processing Centre (CPC), and the software cannot identify whether a return belongs to a sitting High Court or Supreme Court judge. To address this issue, the Court issued fresh directions regarding the sharing of tax return details.
What Details Must Be Shared
According to the Court’s order, private secretaries of judges who have already filed returns under the new tax regime must provide the following information to the Income Tax Department:
- Name of the judge
- Assessment year
- Permanent Account Number (PAN)
- Date of filing the return
- Acknowledgement number of the return
The information must be submitted within the timeline fixed by the Court.
Judicial Allowance Tax Dispute: What Happens to the Tax Returns
The Delhi High Court has directed the Income Tax Department not to process the returns of judges for whom the required details are received. This arrangement will continue until the legal dispute regarding the taxation of judicial allowances is decided.
What If a Return Has Already Been Processed?
The Court also clarified that if any covered return has already been processed and a tax demand has been raised, that demand will remain on hold. Similarly, if any refund becomes payable, it will not be released immediately and will remain subject to the final outcome of the case.
What Is the Judicial Allowance Tax Dispute?
The case arises from a challenge filed by the Delhi Tax Bar Association against a Central Board of Direct Taxes (CBDT) office memorandum. According to the petition, judges who opt for the new tax regime are being denied the benefit of certain judicial allowances available under:
- Supreme Court Judges (Salaries and Conditions of Service) Act, 1958
- High Court Judges (Salaries and Conditions of Service) Act, 1954
The petition argues that these allowances should continue to receive the tax treatment provided under the law.
Why Is Judicial Allowance Tax Dispute Important?
The outcome of the case could affect the taxation of judicial allowances for serving judges across India. It may also provide clarity on how special allowances available under judicial service laws should be treated under the new income tax regime.
What Happens Next?
The Delhi High Court has scheduled the matter for further hearing on September 3. Until then, the interim directions regarding PAN details and tax return processing will remain in effect.
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