Constitutional validity of the provision S. 80DD is challenged on the ground that the entitlement of disabled dependent to get annuity or lumpsum payment under LIC policy only after the death of the subscriber in respect of the policy named ‘Jeevan Aadhar’. Apex Court held that the provision is valid in law. Court also observed that, considering the several difficult situations where the handicapped person may need the payment on annuity or lumpsum basis even during the life time of their parents / guardians, it is for the legislature to take care of theses aspects and to provide suitable provision by making necessary amendments in S.80DD of the Act.
Ravi Agarwal v. UOI (2019) 410 ITR 399/173 DTR 194 / 306 CTR 177/ 260 Taxman 352( SC)
S. 80DD : Medical treatment of dependent–Disability–Observations-Jeevan Aadhar-Amount of annuity under the policy is to be released only after the death of the person assured -Purpose is to secure the future of the person suffering from disability , after the death of the parent / guardian–Provision is valid in law -Considering the several difficult situations where the handicapped person may need the payment on annuity or lumpsum basis even during the life time of their parents / guardians, it is for the legislature to take care of theses aspects and to provide suitable provision by making necessary amendments in S.80DD. [Art. 14]