Gujarat HC Considers Posthumously Filed I-T Returns, Enhances Accident Compensation By ₹6.16 Lakh
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Summarized by AI; it may make mistakes. Check important info
The Gujarat High Court has enhanced compensation awarded to the family of a man killed in a road accident by ₹6,16,342, holding that income tax returns filed posthumously by his legal heir could be considered while determining the deceased’s income.
The court observed that there was no absolute rule barring the consideration of income tax returns filed after a person’s death, particularly when the figures did not show any substantial rise in income and remained consistent with the person’s earlier earnings.
“There is no hard and fast rule that the posthumously filed returns cannot be taken into consideration,” the single-judge bench observed.
Family Challenges Tribunal’s Compensation Award
The order came on an appeal filed by Heena Shah and four other surviving family members of Raju Shah, who died in November 2001 after his scooter was hit by a Gujarat State Road Transport Corporation (GSRTC) bus in Surat.
The Motor Accident Claims Tribunal in Surat had awarded the family ₹6,01,400 in compensation after assessing Rajubhai’s monthly income at ₹3,000.
The tribunal had disregarded income tax returns covering the period from 1992 to 2002. Two of the last three returns had been filed after his death, prompting the tribunal to exclude them while calculating the compensation.
Aggrieved by the decision, the deceased’s dependants approached the High Court, seeking reassessment of his income and an increase in compensation.
High Court Accepts Tax Returns As Evidence Of Income
Reconsidering the tribunal’s approach, the High Court noted that income tax returns are statutory documents that can serve as a benchmark when assessing income for compensation claims under the Motor Vehicles Act.
The court examined the deceased’s net annual income for three relevant years, which stood at ₹60,124, ₹70,642 and ₹83,963.
Based on these figures, it calculated his average annual income at ₹71,576. The court found that the posthumously filed returns did not indicate any substantial increase that would make the figures inconsistent with his previous income.
The bench therefore held that the returns could be considered while determining the compensation payable to the family.
Compensation Increased To ₹12.17 Lakh
After reassessing the deceased’s income and factoring in future prospects, the number of dependants and standard non-pecuniary heads of compensation, the High Court fixed the total compensation at ₹12,17,742.
This increased the award by ₹6,16,342 over the amount granted by the tribunal.
The court directed GSRTC to deposit the additional compensation, along with interest at 9% per annum, within eight weeks for disbursement to the deceased’s family.
The ruling underscores that income tax returns filed after a claimant’s death cannot be rejected solely on the ground that they were filed posthumously; their relevance must be assessed in the context of the available income records.
