Section 80U — the law in short
What the courts have decided on section 80U, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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K.V. Kuppa Raju v Government of India
High CourtHelps department
The Assessing Officer is clubbing my minor daughter's entire interest income with mine under s.64(1A), although I never transferred a rupee to her. Is that provision even valid?
It is valid, and the challenge has failed in every High Court that has heard it. Section 64(1A) deliberately does away with any requirement of a transfer by the parent or of any attempt at avoidance: once an individual has a minor child with income, that individual is a class by himself, and clubbing the minor's income is a machinery provision within Parliament's competence under Entry 82 of List I. Read the sub-section as it now stands before applying that, because it is narrower than the judgment describes: s.64(1A) does not reach the income of a minor child suffering from a disability of the nature specified in s.80U at all, and what remains is cut down further by the proviso (manual work, or the child's own skill, talent or specialised knowledge and experience) and by the s.10(32) exemption.
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Hirabhai Karshanbhai Solanki v ITO, Rajkot
ITATHelps taxpayerNo later treatment found
In a s.147 reassessment the Assessing Officer has thrown out my s.80U disability deduction along with 80C and 80TTA because I produced nothing during the assessment. Can I still prove it in appeal?
Yes, on this order. The Rajkot Tribunal deleted the whole Chapter VI-A disallowance where the assessee produced LIC premium receipts and notified mutual fund receipts for s.80C, and for s.80U produced a disability certificate issued by the competent medical authority — the assessee also appearing personally before the Tribunal — holding that "such evidence cannot be ignored".
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
