1985 (8) TMI 124 - AT - Income Tax

Summary

Issues:
Claim of relief under section 80U of the IT Act based on chronic Asthma leading to permanent physical disability and reduced capacity for gainful employment. Interpretation of "permanent physical disability" under section 80U.

Analysis:
The assessee claimed relief under section 80U of the IT Act, citing chronic Asthma as the cause of permanent physical disability, supported by a medical certificate. The Income Tax Officer (ITO) rejected the claim, stating that chronic Asthma is curable and does not qualify as a permanent physical disability under section 80U. The Assistant Commissioner of Income Tax (AAC) ruled in favor of the assessee, emphasizing that a disability need not be visible to qualify, and reduced capacity due to chronic Asthma warrants the deduction under section 80U. The Revenue appealed against the AAC's decision.

The Departmental Representative argued that chronic Asthma does not constitute a permanent physical disability as it does not hinder employment capacity. The assessee's counsel countered, highlighting the chronic nature of the Asthma as proof of permanency, citing precedents to support the claim. The Tribunal considered the arguments and medical evidence, concluding that the chronic Asthma, lasting 25 years, qualifies as a permanent disability under section 80U, reducing the capacity for gainful employment significantly. The Tribunal referenced a similar case to support the decision.

The Tribunal rejected the Revenue's reliance on a circular listing diseases for section 80U eligibility, stating that each case must be evaluated individually. The Tribunal upheld the AAC's decision, granting the deduction under section 80U for both years. Consequently, the appeals by the Revenue were dismissed, affirming the assessee's entitlement to the relief under section 80U based on the chronic Asthma-induced permanent physical disability.