Section 80DD l Medical Treatment of Handicapped Dependents, ETC
Circular No. 653 was issued by the Central Board of Direct Taxes on 15 June 1993. Its subject is Section 80DD l Medical Treatment of Handicapped Dependents, ETC.
This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.
Reopens the door for disability claims that could not be made because the rules came late. Section 80U was widened by the Finance Act, 1989 from assessment year 1990-91 to cover mental retardation as specified in rules, but rule 11D(ii) defining mental retardation was notified only on 27 January 1992, though with effect from 1 April 1990; and section 80DD, inserted by the Finance Act, 1990 from assessment year 1991-92 for the medical treatment, training and rehabilitation of a handicapped dependant, likewise depended on rule 11A, notified on the same day with effect from 1 April 1991. Eligible assessees may therefore have made no claim for assessment years 1990-91 and 1991-92. The Board directs that where the assessment is over or an intimation under section 143(1)(a) has been issued, the assessee may file a rectification application under section 154 or a revision petition under section 264 with proper medical certificates, that such petitions be admitted, condoning delay if necessary, and disposed of on merits, and that any refund due be granted. Where the assessment is still pending or no intimation has been served, a revised return may be filed for the limited purpose of claiming under section 80U(1)(iii) or section 80DD, and for that purpose the Board, using section 119(2)(a), extends the time limit in section 139(5) to 31 December 1993 for those years. Any other case of hardship is to be brought to the Board.
The rules on which the two deductions depended were notified nearly two years after the provisions took effect, so assessees could not have made the claims when their returns were due.
SECTION 80DD l MEDICAL TREATMENT OF HANDICAPPED DEPENDENTS, ETC.
514. Clarification regarding possibility where, in absence of relevant rules at the time returns for assessment years 1990-91 and 1991-92 were due, certain eligible assessees could not have claimed deduction either under section 80DD or section 80U(1)(iii)
1. Section 80U as it existed till the assessment year 1989-90 and earlier years provided for a deduction in the case of a resident individual assessees suffering from a permanent physical disability (including total blindness).2. By an amendment made by the Finance Act of 1989 with effect from assessment year 1990-91 the deduction was made also applicable to assessees suffering from mental retardation to the extent specified in the rules made in this behalf by the Board. Though this amendment came into force w.e.f. 1-4-1990, the rule referred to therein viz., rule 11D(ii) defining "mental retardation", has been notified only on 27-1-1992 though with retrospective effect from 1-4-1990. Thus, it is possible that, in the absence of relevant rules at the time the returns for the assessment years 1990-91 and 1991-92 were due, certain eligible assessees could not have claimed the deduction under section 80U(1)(iii).
3. A similar issue has arisen in respect of section 80DD, which was inserted by the Finance Act, 1990 w.e.f. 1991-92. This section provides for a deduction in respect of medical treatment, training and rehabilitation of handicapped dependants of assessees. The deduction is applicable if the dependant is suffering from a permanent physical disability including blindness or is subject to mental retardation being a permanent physical disability or mental retardation specified in the rules made in this behalf by the CBDT. Though this section became effective from the assessment year 1991-92 the rule specified therein viz., rule 11A was introduced only on 27-1-1992 though with retrospective effect from 1-4-1991. It is possible therefore that certain eligible assessees may not have claimed the deduction due to absence of rules at the relevant time when the return for the assessment year 1991-92 was due.
4. It is clarified that such of those assessees in whose cases the assessments, for these assessment years have already been made, or intimations under section 143(1)(a) have already been issued, are free to file rectification applications under section 154 or revision petitions under section 264 enclosing proper medical certificates and such petitions shall be admitted by the concerned authorities, if necessary by condoning the delay, and shall be disposed of on merits. Where any refund is due on this account the same shall be granted.
5. In the cases of those assessees in whose cases the assessments are still pending or no intimation under section 143(1)(a) has so far been served, they may file revised returns for the limited purposes of claiming deduction under either section 80U(1)(iii) or section 80DD and, for this purpose, the Board, in exercise of the powers vested in it under section 119(2)(a) of the Income-tax Act, hereby extends the time limit mentioned under section 139(5), till 31-12-1993, for filing such revised returns for the aforesaid assessment years. The Assessing Officers are authorised to deal with such returns on merits according to law and grant refunds wherever due.
6. If there are any other cases of hardship, not covered by this Circular, the same be brought to the notice of the Board for appropriate action.
Circular : No. 653, dated 15-6-1993.
In an old rectification or revision petition for a disability deduction of assessment year 1990-91 or 1991-92 that was rejected as time-barred.
Rules it names. Rule 11A, 11D of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
Source: the Income Tax Department’s own published text — its page for this instrument.