Income Tax Return Must Be Accepted For Assessing Victim's Income In Motor Accident Claims: Calcutta High Court Grants ₹39 Lakh Compensation
The Calcutta High Court held that when a victim's income tax return is filed, it is a reliable and authentic basis for assessing income in motor accident claims. The bench granted compensation of Rs. 39 Lakh to the claimants (mother and father) of the victim. Justice Biswaroop Chowdhury stated that once an Income Tax Return is accepted by the Income Tax Authority, it becomes an...
The Calcutta High Court held that when a victim's income tax return is filed, it is a reliable and authentic basis for assessing income in motor accident claims. The bench granted compensation of Rs. 39 Lakh to the claimants (mother and father) of the victim.
Justice Biswaroop Chowdhury stated that once an Income Tax Return is accepted by the Income Tax Authority, it becomes an authentic document with regard to the income of the victim.
When Income Tax Return is not filed it becomes necessary for claimants to furnish Bank Passbooks, and business accounts to corroborate the case of income of the victim but when Income Tax Return is filed and officers of Income Tax Department is examined to verify the same there is no ground to disbelieve the Income Tax Return. This is not a case where the Income Tax Return is filed after instituting the claim case thus there is no question of inflating the income, stated the bench.
In the case at hand, the deceased died due to the rash and negligent driving of the driver of the offending vehicle. The deceased was a goldsmith and earned Rs. 30,000/- per month. The claimants/appellants are the deceased's mother and father.
Following the incident, a complaint was lodged with the Police Authority, and a case was instituted under Sections 279/304A of the Indian Penal Code against the driver of the offending vehicle.
The case of the claimants was that the Tribunal erred in assessing the monthly income of the victim as Rs. 10,000/- per month and not considering the three consecutive years of income tax submitted, and that the Tribunal ought to have considered the annual income of Rs. 3,18,470/- based on the income tax return for AY 2014-2015.
It was further stated that the income tax return was submitted during life lifetime of the victim and not after his death, and thus there is no scope to inflate the income. The Trial Judge erred in insisting that Bank Passbooks be produced in spite of filing copies of the income tax return and examination of the Income Tax Officer.
The bench opined that while considering a motor accident claim, the income of a victim who is a salaried person can be ascertained from the salary slip of the victim upon examining his employer. But in the case of a self-employed person, the income can be ascertained from his own declaration made before the Income Tax Authority.
Once Income Tax Return is accepted by the Income Tax Authority it becomes authentic document with regard to the income of the victim. Whether Income Tax Return is accepted by the Authority can be ascertained upon considering the evidence of the officials of Income Tax Authority which is done in this case, stated the bench.
When the income of a person is assessed by a competent authority, it is not necessary for the Court adjudicating motor accident claims to ask for further particulars and sit in review of the assessment already made by such authority when such return is filed during life lifetime of the victim and not after instituting the claims case.
In view of the above, the bench allowed the appeal in part and modified the judgment and award passed by the Additional District Judge to the extent that the appellants/claimants are entitled to Rs. 39,00,000/- compensation from ICICI.
Case Title: Sandhya Rani Jana and Anr. v. ICICI Lombard General Insurance Co. Ltd. and Another
Case Number: F.M.A. 70 of 2023
Counsel for Appellant/Claimants: Ashique Mondal and Shahmeraz Alam
Counsel for Respondent/Insurance Co.: Saswata Bhattacharyya