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D.D. Vyas, Judicial Member

1. This is an appeal by the assessee relating to the assessment year 1978-79. The assessee is an individual. For this year, return was filed declaring income of Rs. 9,490. The assessee derives income from salary. He has claimed deduction of Rs. 5,000 under Section 80U of the Tncome-tax Act, 1961 ('the Act'). A certificate in support of the claim from the registered Doctor was also filed. The learned ITO was of the view that permanent physical disability of the assessee has no effect of reducing substantially his capacity to engage him in gainful employment or occupation. Consequently, he disallowed the claim under Section 80U.

3. Before the Tribunal on behalf of the assessee it was contended that the finding of the learned AAC is incorrect. The assessee suffers from a permanent physical disability which has the effect of reducing substantially his capacity to engage in a gainful employment or occupation. A certificate to this effect was also issued by a registered medical practitioner. Apart from it, the Board has issued a circular and, inter alia, the said circular provides that if a person suffers from bilateral paralysis of lower limb, which is in the nature of a permanent physical disability, he is entitled to claim deduction under Section 80U. The said circular is beneficial to the assessees and as such it is binding on the income-tax authorities. From the evidence on record, it is clear that the assessee is suffering from bilateral paralysis of lower limb and as a result of it, the assessee cannot be substantially engaged in a gainful employment or occupation. Thus, the learned AAC was not correct in disallowing the claim under Section 80U.

6. For and from the assessment year 1971-72, the newly substituted Section 80U provides for a deduction of Rs. 5,000 in the computation of the total income of a resident individual, who, as at the end of the previous year, is subject to or suffers from a permanent physical disability, which has the effect of reducing substantially his capacity to engage in a gainful employment or occupation, besides providing for such deduction to a totally blind resident individual as under the old Section 80U. In order to be eligible for abovementioned deduction of Rs. 5,000, the assessee will be required to furnish in respect of the first assessment year, for which the deduction was claimed, a certificate from a registered medical practitioner.

8. Looking to the aforesaid facts and the evidence on record, in my opinion, the assessee is entitled to claim deduction under Section 80U. The finding of the learned AAC to the contrary is not correct. The ITO is directed to allow relief to the assessee under Section 80U, as claimed.

9. In the result, the appeal is allowed.