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2013 (6) TMI 378 - AT - Income TaxDeduction u/s 80C on the LIC premium paid in respect of his LIC policies paid out of loan funds - CIT(A) disallowed the claim - Held that:- The provisions of sec. 80C, as applicable to the year under consideration, do not specify the condition that the LIC premium payments should be paid out of income chargeable to tax. Further, as stated earlier, section 80C is included in Part-B of Chapter VI-A of the Act which provides for deduction in respect of certain payments. Only certain sections included in Part-B of Chapter VI-A contain the words “out of income chargeable to tax” and certain sections do not contain the above said words, i.e., within the sections included in Par-B of Chapter VI-A of the Act, the parliament has prescribed the condition that the payments should have been made out of income chargeable to tax only in certain sections, meaning thereby, the parliament has consciously omitted the above said condition in certain sections. As stated earlier, no such condition is prescribed in sec. 80C . It is a well settled proposition of law that one cannot supplement or add words to a section, which are not intended to be included by the parliament. Thus the payment of LIC premiums made during the previous year out of loan funds are also eligible for deduction u/s 80C - appeal of the assessee allowed.
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