New Delhi, July 30 -- The Delhi High Court has directed that the Income Tax Department shall not process or proceed with the income tax returns of Supreme Court and High Court judges until further orders in a petition challenging a CBDT Office Memorandum that allegedly denies tax treatment available to certain judicial allowances under the new tax regime.

The Court also permitted judges to file their income tax returns or revised returns by reflecting the allowances covered under the High Court Judges and Supreme Court Judges service laws as "receipts not in the nature of income" while filing returns.

A Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta passed the interim directions while hearing a writ petition filed by t...