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| The Tax Publishers2019 TaxPub(DT) 0154 (SC) : (2019) 410 ITR 0399 : (2019) 306 CTR 0177 : (2019) 260 TAXMAN 0352 INCOME TAX ACT, 1961
Section 80DD
There may be harsh cases where handicapped persons may need payment on annuity or lump sum basis of sum assured under Jeevan Aadhar Policy floated by LIC, even during lifetime of thier parents/guardians. Taking note of this fact, government was urged to have a re-look and explore the possibility of making suitable amendment in section 80DD.
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Deduction under section 80DD - Maintenance including medical treatment of dependant being a person with disability - Possibility of making suitable amendment regarding payment on annuity or lump sum basis of sum assured under Jeevan Aadhar Policy daring life time of parents/guardians -
Assessee filed writ petition contending that benefit of Jeevan Aadhar Policy floated by LIC taken for the benefit his disabled children in terms of section 80DD was to be allowed to be utilized even during lifetime of the assured.Held: The petitioner might be justified in pointing out that there could be harsh cases where handicapped persons might need payment on annuity or lump sum basis even during the lifetime of their parents/guardians. For example, where guardian has become very old but is still alive, though he is not able to earn any longer or he may be a person who was in service and has retired from the said service and is not having any source of income. In such cases, it may be difficult for such a parent/guardian to take care of medical needs of his/her disabled child. Even when he/she has paid full premium, the handicapped person is not able to receive any annuity only because the parent/guardian of such handicapped person is still alive. There may be many other such situations. However, it is for the Legislature to take care of these aspects and to provide suitable provision by making necessary amendments in section 80DD. In fact, Chief CIT for Persons with Disabilities has also felt that like other policy holders, Jeevan Aadhar policy should also be allowed to mature after 55 years of age of proposer and annuity amount should be disbursed through the LLCs or National Trust. Accordingly, such, writ petition was disposed of by urging upon UOI respondent No. 1 to have a re-look into this provision by taking into consideration all the aspects, and explore the possibility of making suitable amendments.
REFERRED :
FAVOUR : In assessee's favour (by way of remand).
A.Y. :
IN THE SUPREME COURT OF INDIA
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