1998 (7) TMI 75

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....e years 1985-86, 1986-87 and 1987-88. After filing the returns, he claimed the benefit under section 80U(1)(ii) of the Income-tax Act since the petitioner was a permanently physically disabled person afflicted with almost total deafness in both the ears. The petitioner filed a petition under section 264 of the Income-tax Act before the first respondent, claiming the benefit and the same was rejected and the petitioner preferred an appeal before the second respondent which was also rejected. Hence, the present writ petition has been filed. The respondents have filed counter contending that the petitioner is not entitled for the benefit of section 80U(1)(ii) of the Income-tax Act, since the petitioner's permanent physical disability has no....

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....rned senior counsel for the respondents contended that section 80U(1)(ii) of the said Act contemplates two conditions for getting deductions : one is permanent disability specified in the rules; and the other is such permanent disability must be to the effect of reducing substantially the capacity to engage in a gainful employment or occupation. So far as the compliance of the first condition is concerned there is no dispute. The authorities below have considered the fulfilment of the second condition and found that the petitioner has not fulfilled the second condition and as such he will not be entitled for the deduction. The petitioner is employed in a foreign bank and earning a sum of Rs. 5,000 p.m. and as such it cannot be said that ....

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....stantially his capacity to engage in a gainful employment or occupation. To get deduction as per this provision, as pointed out by learned senior counsel for the respondents, two conditions have to be fulfilled. One condition is that the person suffers from a permanent physical disability specified in the rules made in this behalf by the Board. The second condition is that such permanent disability has the effect of reducing substantially his capacity to engage in a gainful employment or occupation. Rule 11D provides in Explanation for the physical disability so far is the deafness is concerned. Rule 11D(c) specifies that the permanent deafness with hearing impairment of 71 decibels will amount to permanent physical disability. In thi....