1. Facts of the Case
- The assessee’s dependent mother, a senior citizen, underwent open heart surgery.
- The surgery was performed by a general surgeon in a private hospital.
- The assessee incurred medical expenses of Rs. 3,00,000 for the treatment.
- He claimed a deduction of Rs. 60,000 under Section 80DDB of the Income Tax Act, 1961.
- The Assessing Officer rejected the claim, disallowed the deduction, and added the amount to the assessee’s income.
- The department’s position is being defended.
2. Issues in the Case
- Is open heart surgery covered under the specified diseases or ailments as listed under Section 80DDB read with Rule 11DD?
- Was the treatment provided in accordance with the prescribed conditions under the Act and rules?
- Is a certificate from a specialist in a government hospital mandatory for claiming deduction under Section 80DDB?
- Is the Assessing Officer’s rejection of the deduction legally valid based on procedural and substantive grounds?
3. Legal Principles Covered to Support Case Proceedings and Judgements
A. Section 80DDB of the Income Tax Act, 1961
- Allows deduction for specified diseases or ailments in case of:
- The assessee or
- A dependent relative
- Maximum deduction for a senior citizen is Rs. 60,000 (for AY 2015–16 and earlier).
(Note: The limit was increased to Rs. 80,000 later for very senior citizens.) - The deduction is allowed only for treatment of diseases specified in Rule 11DD, such as:
- Neurological diseases
- Cancer
- AIDS
- Chronic renal failure
- Hematological disorders
- Certain cardiovascular diseases requiring surgery
However, open heart surgery is not explicitly listed as a qualifying disease unless it falls under the category of “chronic heart disease” or similar specified cardiovascular conditions.
B. Rule 11DD of Income Tax Rules, 1962
- Specifies the diseases and also mandates that the certificate:
- Must be obtained from a specialist doctor in the relevant field (e.g., cardiologist), and
- The specialist must be practicing in a government hospital.
C. Non-Compliance of Prescribed Conditions
- In this case:
- The surgery was done by a general surgeon, not a specialist cardiologist.
- The treatment was in a private hospital, not a government hospital.
- The assessee did not produce the required certificate from a specialist in a government hospital, as mandated by Rule 11DD.
- Courts have upheld that procedural requirements for deductions must be strictly followed, especially in cases involving exemptions and deductions.
4. Possible Judgement
Department’s Position (Defending the Assessing Officer):
- The deduction under Section 80DDB is not a blanket deduction for all medical expenses. It is available only for treatment of specific diseases and under strict documentation requirements.
- In this case:
- The disease treated (open heart surgery) is not clearly specified under Rule 11DD.
- The treatment was conducted by a general surgeon instead of a cardiologist.
- It was carried out in a private hospital, not a government hospital, and no certificate was produced from the prescribed authority.
- Hence, the Assessing Officer correctly rejected the deduction since the assessee failed to meet the legal conditions laid down in the Act and Rules.
