1986 (8) TMI 155 - AT - Income Tax

Tribunal grants relief under section 80U for post-polio disability, recognizing reduced employment capacity.

The tribunal allowed the appeals, accepting the assessee's claim for relief under section 80U of the Income-tax Act for assessment years 1980-81 and ... Deductions Issues:Claim of relief under section 80U of the Income-tax Act, 1961 for assessment years 1980-81 and 1981-82.Analysis:The assessee, suffering from partial paralysis, claimed relief under section 80U of the Income-tax Act, 1961. The Income Tax Officer (ITO) and the Appellate Authority Commissioner (AAC) rejected the claim, stating that the assessee, employed as a senior medical representative, did not have a permanent physical disability substantially reducing his capacity for gainful employment. The issue revolved around whether the assessee's disability met the criteria under section 80U. The relevant section allows a deduction for individuals with specified disabilities affecting their capacity for employment. The assessee presented a medical certificate confirming residual paralysis due to post-polio, affecting both lower limbs. The key question was whether this disability substantially reduced the assessee's capacity to work. The tribunal noted that paralysis is a significant handicap impacting efficiency and capacity. Despite the assessee's employment, the disability still hindered his potential for better opportunities. Referring to a CBDT Circular supporting relief for paralysis of lower limbs, the tribunal concluded that the assessee's disability met the criteria under section 80U(ii), entitling him to the claimed relief. Consequently, the tribunal allowed the appeals, accepting the assessee's claim for both assessment years.This judgment highlights the interpretation and application of section 80U of the Income-tax Act, specifically concerning the eligibility criteria for claiming relief based on a permanent physical disability affecting the capacity for gainful employment. It underscores the importance of medical evidence in establishing the nature and impact of the disability on the individual's ability to work. Additionally, the tribunal's reliance on relevant legal provisions and circulars demonstrates the significance of statutory guidelines in determining eligibility for tax relief in cases of physical disabilities. The decision emphasizes the need for a holistic assessment of the disability's impact on the individual's employment prospects, considering the broader implications of the impairment on their professional capabilities and opportunities.