The Gujarat High Court has said that there is no hard and fast rule that posthumously filed income tax returns cannot be taken into consideration while calculating income of the deceased for determining accident compensation. [2026 LiveLaw (Guj) 269]

In doing so the court enhanced the accident compensation by Rs. 6,16,342 to be given to the family of the deceased. 

The court was hearing the claimants appeal against an order of the Motor Accident Claims Tribunal which had granted compensation of Rs.6,01,400 with interest at the rate of 9% per annum.

The deceased was driving his scooter when he was hit by a bus from behind and as a result, the deceased fell down and received severe head injuries succumbing on the spot. The claimants had sought compensation of Rs. 20 Lakh along with interest at the rate of 12% per annum.

The claimants argued that the Tribunal had failed to consider the income tax returns of the deceased between 1992 to 2002 to establish the income. Instead the Tribunal took Rs.3,000/- as the monthly income and assessed the compensation of Rs.6,01,400 and granted the same along with 9% interest from the date of the petition till realization.

Justice JC Doshi noted that in the present case,  out of the last 3 income tax returns for financial years 1998-99, 1999-2000 and 2000- 2001, last two have been filed posthumously.

It noted that the income of the deceased in the financial year 1998-99 was Rs.61,298, in the financial year 2000-2001 was Rs.74,565 and in the financial year 2000-2001, it was Rs.92,024. Net income after deduction of the tax comes to Rs.60,124, Rs.70,642 and Rs.83,963 the court said. 

"The income tax returns, which are filed posthumously, does not show any substantial rise in the income, which makes it consistent to prove the previous income of the deceased claimant. There is no hard and fast rule that the posthumously filed returns cannot be taken into consideration," the court said. 

The court noted that the posthumously filed returns did not show substantial hike in the income and was consistent with the previous income of the deceased.

The court said that the net income of the last three income tax returns comes to Rs.2,14,729, the average of which comes to Rs.71,576 and that is adopted as the income of the deceased.

"The learned Tribunal has granted 30% of the income towards the loss of future prospects. The deceased was 45 years at the time of the road accident, which will rather entail 25% of the income towards the loss of future prospects. Since there are 5 dependents, the deduction of 1/4th towards personal expenses would apply. The multiplier of 14 as per the settled principle considering the ratio laid down by the Hon'ble Apex Court in the case of National Insurance Company Ltd. Vs. Pranay Shethi, reported in (2017) 16 SCC 680 will apply. Further, considering the ratio laid down by the Hon'ble Apex Court in the case of Pranay Shethi (Supra) , the general and non-pecuniary damages, Rs.18,150/- each towards loss of estate and funeral expenses should be awarded. Towards loss of consortium, there are five dependents and therefore, Rs.48,400/- to each dependent should be awarded as per the decision of the Hon'ble Apex Court in the case of United India Insurance Co. Ltd., versus Satinder Kaur @ Satwinder Kaur reported in (2021)..." the court said. 

The court held that the claimants are entitled to get the enhanced compensation of Rs.6,16,342 with 9% p.a. interest from the date of filing the claim petition till its realisation, which would meet the ends of justice.

The court directed Gujarat State Road Transport Corporation to deposit the enhanced amount before the Tribunal with interest within Eight weeks. The Tribunal was directed to disburse the entire awarded amount lying in the FDR and/or with the Tribunal, with accrued interest thereon, if any, to the claimants. 

Also Read: Posthumously Filed Income Tax Return Can Be Considered To Determine Motor Accident Compensation: Gujarat High Court