Section 80U relief for permanent handicap does not require total incapacity to earn, the court held.

Section 80U relief is available where a medical condition results in permanent handicap that impairs a person's performance and efficiency compared with an able-bodied person. Total incapacity to earn is not required; the benefit is meant for handicapped taxpayers whose earning capacity is reduced, not only for those completely unable to earn income. On the facts described, the medical certificate established a permanent handicap affecting the assessee's ability, so the assessee qualified for the deduction and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to relief under section 80U of the Income-tax Act, 1961 on the basis of his medical condition, and whether proof of total incapacity to earn was necessary to claim that benefit.

Analysis: The medical certificate showed a permanent handicap affecting the assessee's ability and efficiency. Relief under section 80U is intended for a handicapped person whose performance and capacity are impaired when compared with a person without such handicap. It is not necessary that the assessee must be incapable of earning income; if that were required, the concession would be denied to the very class for whom it was created.

Conclusion: The assessee was entitled to the benefit of section 80U, and the Revenue's challenge failed.

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