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Issues:
1. Claim of deduction under section 80U of the IT Act for permanent physical disability. 2. Rejection of claim by the Income Tax Officer (ITO) and Appellate Authority. 3. Interpretation of section 80U and eligibility criteria for deduction. 4. Disallowance of expenditure on car usage. Analysis: 1. The assessee, a medical professional, claimed a deduction under section 80U of the IT Act for the first time in the assessment year 1978-79, supported by a medical certificate describing his health conditions affecting his eyesight and overall physical condition. The claim was initially admitted for the following two assessment years. However, in the assessment year 1980-81, the ITO rejected the claim, stating that the diseases mentioned did not qualify as permanent physical disabilities under the relevant circular. The Appellate Authority upheld this decision. 2. The assessee appealed the decision, arguing that his conditions amounted to a permanent physical disability, significantly reducing his capacity to engage in gainful employment. The assessee's counsel contended that the previous admission of the claim in earlier years should be considered. Additionally, the counsel highlighted the impact of the diseases on the assessee's ability to work, emphasizing that the diseases were not specifically listed in the circular as a basis for rejection. 3. Section 80U of the IT Act provides for deductions for individuals with total blindness or permanent physical disabilities substantially reducing their capacity for gainful employment. The medical certificate submitted by the assessee indicated a severe reduction in eyesight but did not establish a permanent physical disability as defined by the section. The tribunal noted that the diseases mentioned, including diabetes and high blood pressure, were not deemed to cause a permanent physical disability in this case, as they are common conditions and did not meet the criteria outlined in section 80U. 4. The tribunal reviewed previous cases cited by the assessee, noting that they involved different medical conditions that were considered to constitute permanent physical disabilities. In contrast, the diseases presented by the assessee were not found to meet the threshold for a permanent physical disability under section 80U. Therefore, the tribunal agreed with the lower authorities' decision to reject the deduction claim under section 80U. 5. Apart from the deduction claim, the ITO disallowed a portion of the expenditure on car usage, citing personal use of the vehicle. The disallowance was upheld by the Appellate Authority. The tribunal affirmed this decision, stating that the absence of disallowance in previous years did not preclude the action in the current year, especially considering the assessee's health condition and the reasonable nature of the disallowance. 6. Ultimately, the tribunal dismissed the appeal, upholding the rejection of the deduction claim under section 80U and the disallowance of a portion of the car usage expenditure based on the assessment of the facts and applicable legal provisions.
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