RAMKRISHNAN SRINIVASAN,CHENNAI vs. ITO, NCW-4(6),, CHENNAI

The sole issue raised in the present appeal is the denial of deduction u/s. 80D of the Income-tax Act, 1961 (“the Act”) in respect of medical insurance premium paid for the assessee’s dependent parents amounting to Rs. 32,153/-.

The assessee has claimed deduction of Rs. 32,153/- u/s. 80D of the Act towards medical insurance premium paid for his dependent parents. However, the CPC in the intimation issued u/s. 143(1) of the Act did not allow the said deduction. On appeal, the Ld. Addl. CIT(A) allowed the deduction only in respect of the premium paid for self .

The Ld. Authorized Representative (A.R) of the assessee has submitted that in terms of Section 80D(2)(b) r.w.s 80D(4) of the Act, the assessee is entitled to claim deduction for medical insurance premium paid for his parents u/s. 80D of the Act.

We have heard the rival submissions, and perused the materials available on record. It is noted that the CPC disallowed the claim of deduction u/s. 80D of the Act in the intimation passed u/s. 143(1) of the Act. On appeal, the Ld. Addl. CIT(A) has allowed the claim in respect of premium paid for self, but denied the deduction for premium paid for the parents. As per Section 80D(2)(b) r.w.s 80D(4) of the Act, the assessee is entitled to deduction in respect of medical insurance premium paid for his parents, subject to fulfillment of conditions prescribed under the said section. In view of the above, we direct the A.O to allow the claim of deduction of Rs. 32,153/- u/s. 80D of the Act after due verification.

In the result, the appeal filed by the assessee is allowed.