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1. Eligibility of a person suffering from heart disease for a deduction under section 80-U of the Income Tax Act. Detailed Analysis: The appeal before the Appellate Tribunal ITAT Bombay-C involved the eligibility of an individual suffering from heart disease for a deduction under section 80-U of the Income Tax Act for the assessment year 1982-83. The primary issue was whether the heart disease suffered by the assessee, reducing his earning capacity, qualified as a disability or handicap under section 80-U. The assessee, aged 68 years, had initially declared a total income of Rs. 41,225, which was later revised to Rs. 31,255 after claiming a deduction of Rs. 10,000 under section 80-U. The Income-tax Officer (ITO) contended that the heart disease did not diminish the earning capacity of the assessee, citing a Board's circular and previous Tribunal decisions. The Appellate Asstt. Commissioner (AAC) upheld the ITO's decision, stating that the disease did not prevent the assessee from engaging in gainful employment or constitute a physical disability hindering income generation. The assessee's counsel relied on a decision of the Ahmedabad Bench of the Tribunal where a similar deduction was allowed for a coronary heart disease case. However, the Tribunal noted that the facts of the Ahmedabad case were distinguishable, as it involved an advocate unable to switch professions due to a surgical operation and a significant earning capacity reduction. The Tribunal highlighted Rule 11D, effective from 1-4-1985, defining permanent physical disabilities eligible for section 80-U deduction. It emphasized that the legislative intent was to provide relief only to those with specified disabilities, not common ailments like heart disease. The Tribunal found the assessee's case did not meet the criteria for a permanent physical disability under section 80-U, distinguishing it from previous Tribunal decisions involving different illnesses. In conclusion, the Tribunal dismissed the assessee's appeal, affirming the lower authorities' decision to reject the deduction claim under section 80-U. It clarified that while respecting the Ahmedabad Tribunal's decision, the unique circumstances of that case and the legislative provisions were crucial factors in determining the eligibility for the deduction. The Tribunal's decision was based on the specific facts of the case, the legislative framework, and the nature of the assessee's illness, ultimately denying the deduction under section 80-U.
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