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TMI Blog2024 (9) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... n after the demise of the caregiver is of utmost significance. It is only with that object that the caregiver or a subscriber would take such a policy so that he would not leave a disabled person in the lurch on his demise. If that is the object of the policy then we do not think the subscriber or the caregiver of the subscriber should be given the liberty to discontinue the policy during his lifetime on attaining 60 years of age. That would only go against the object with which the policy has been taken and against the interest of the beneficiary, namely, a disabled person. We do not think that the plea for retrospective operation of the amendment is in the interest of the disabled persons nor can this Court give a retrospective operation to the amendment. This is particularly having regard to the fact that an insurance contract is in a sense, a commercial contract, having certain terms and conditions and the sub-stratum of the contract cannot be removed by giving a retrospective operation to the amendment. The benefit under Section 80DD of the Act would have been availed by the subscribers at the time when they have subscribed to the policy. It is also relevant to note that the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Apex Court in Writ Petition (Civil) No.1107 of 2017 dated January 03, 2019 and initiate suitable necessary action accordingly. c. Issue order or directions to annul/strike down clause(a) of sub-section (2) of Section 88DD of the Income Tax which is against the objective of the legislation and violating the fundamental rights of the handicapped person provided under Article 14 of the Constitution of the India. d. Pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case. 2. We have heard Mr. Partha Sil learned counsel who has been appointed to assist this Court and learned senior counsel Mr. Kailash Vasdev for Respondent No.2 and learned senior counsel Ms. Nisha Bagchi for Respondent-Union of India and perused the material on record. 3. Having heard learned counsel for the respective parties, we find that the concerns expressed by the petitioner in this writ petition have been assuaged to a certain extent inasmuch as the Parliament has amended Section 80DD of the Income Tax Act, 1961 (hereinafter referred to as the Act for the sake of brevity). The said provision deals with payment of annuity of a lump sum amount for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year. (4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed: Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income. By virtue of the Finance Act, 2022, Section 80DD was amended with effect from 01.04.2023, in the following terms: (I) in sub-section (2), for clause (a), the following clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the benefit of the policy would be provided to a disabled person only on the death or demise of the caregiver or the subscriber. The event at which the benefit of the policy would be given to the disabled person is on the death of the subscriber. It is only then the policy would come to end and the monetary benefit would be given to the disabled person. That there is a salient object with which the terms and conditions of the policy have been devised. That having regard to the order of this Court on 03.01.2019, there has been an insertion of a clause under Section 80DD taking into consideration the concern expressed by the very same petitioner herein in the earlier writ petition and to that extent, amendment has been made. But it is too farfetched for the petitioner to seek retrospective operation of the said amendment to the existing policies. It was contended that the terms of the policies cannot be changed subsequent to their crystallization and the premiums being paid on the said terms. Therefore, there can be no retrospective operation of the amendments. 7. We have considered the submissions advanced at the Bar in light of the object of Section 80DD and the fact that pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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