Non-examination of official of IT Department – Effect of -- Considering the scheme of the Act, which is a beneficial piece of legislation, the income-tax returns produced by the claimants ought not to be rejected merely because they have not been proved by some official from the Income Tax Department unless some serious doubts are raised qua the authenticity of the same.

(P&H HC) Decided on: 12.05.2022

Assessment of income – It is only on the basis of the said ITR that the income of the deceased and the consequent loss of dependency to the claimants, has been assessed by the Tribunal -- If the insurance company had any proof that before this year the deceased, who was self-employed, was not earning this much of money, then the insurance company was free to lead anything in evidence to that effect -- It is the income of the deceased which he was earning at the time of the death, which is the basis for calculation and grant of the compensation to the dependants; and any earlier lesser income would be totally irrelevant -- Hence, Court did not find any illegality in the findings recorded by the Tribunal; in this regard.

(P&H HC) Decided on: 06.09.2021

Proof of -- Compensation in motor vehicle accident case -- Deceased aged 35 years – Five dependents – Assessment of income – A photocopy of the original ITR for the year 2006-07, bearing the rubber stamp of the Income Tax Department shows that the date of filing the ITR was prior to the death of the deceased -- Hence, the High Court was not justified in disregarding the ITR for the year 2006-07 while assessing the income of the deceased -- ITRs for the assessment years 2005-06 and 2006-07 reflects the income of approximately Rs. 1,00,000 p.a. made basis for computing the compensation – Future prospects 40% and deduction towards his personal expenses made by 1/4th -- Multiplier adopted at 16 is appropriate -- Under the conventional heads Rs. 70,000/- (Loss of estate Rs. 15,000/- + Funeral expenses Rs. 15,000/- + Loss of consortium Rs.40,000/-) awarded – Total compensation comes to Rs.17,50,000/- -- Though the claimant did not file appeal before the High Court, Supreme Court by exercising powers under Article 142 enhanced the same to do complete justice between the parties – Interest @ 7.5% p.a. awarded from date of filing the claim petition.

(SC) Decided on: 16.06.2020

Death case -- Compensation in motor vehicle accident case -- Deceased 47 years at the time of accident – Income as per ITR is Rs.4,80,000/- per annum – Adding 30% to the income of the deceased towards future prospects, the amount comes to Rs.6,24,000/- -- Deducting Rs.44,800/- towards income tax, according to the slab given in the relevant assessment year, the amount comes to Rs.5,79,200/- -- There being two dependents namely deduction of 1/3rd towards personal and living expenses made – After deducting 1/3rd, the amount comes to Rs.3,86,130/- -- Multiplier of '13' applied is appropriate and the compensation payable to the claimants for loss of dependency comes to Rs.50,19,700/- -- In addition for funeral expenses Rs.25,000/- and Rs.1,00,000/- is awarded to the claimants for loss of love and affection.

(P&H HC) Decided on: 27.05.2016

Downloaded from internet – Compensation in motor vehicle accident case -- Income of deceased -- Whether secondary evidence -- Income tax officer stated as PW that now no signed return is required to be filed by an assessee -- Return is filed online and the reports Ex.P13 to Ex.P16 have been processed and finalized by the department – Held, merely because the returns were downloaded from the internet would not make them secondary evidence -- Returns proved in due process of law and the documents were very much admissible in evidence – Income of deceased taken as per ITR.

(P&H HC) Decided on: 27.05.2016