ITR Prior To Death Of Assessee Is The Basis For Computation Of Loss Of Future Income Including Future Prospects: Gujarat High Court
The Gujarat High Court has held that an income tax return (ITR) filed prior to the death of the assessee is the basis for computation of loss of future income, including future prospects. The single bench of Justice Gita Gopi has observed that both the parents are dependents of the deceased son and are entitled to apply for compensation. Both the parents are entitled to...
The Gujarat High Court has held that an income tax return (ITR) filed prior to the death of the assessee is the basis for computation of loss of future income, including future prospects.
The single bench of Justice Gita Gopi has observed that both the parents are dependents of the deceased son and are entitled to apply for compensation. Both the parents are entitled to the compensation amount under the head of dependency loss.
The appellant has challenged the judgement and award passed by the Motor Accident Claims Tribunal. The appellant contended that the Tribunal has not considered the oral as well as documentary evidence on record and has not considered the income aspect in accordance with the judgments of the Apex Court where the income tax returns were produced before the Court.
The appellant contended that the tribunal had erred in considering the aggregate income of the deceased for the last three years and had not even considered the mother of the deceased as dependent while both the parents were dependent on the deceased son. The Tribunal has totally discarded the evidence and has erred in not considering the parents as dependent and only granted a lump-sum amount which could have been granted even under Section 140 of the Motor Vehicles Act.
The insurance company submitted that the Tribunal has given reasons for not considering the parents as dependent. If at all the income of the deceased has to be considered, then the aggregate income for the last three years is required to be assessed since there is no evidence to support the ITRs filed by the deceased.
The date of the accident is 12.10.2006. was filed on 10.10.2006, i.e., two days prior to the accident, which shows the income of the previous year. The income was prior to the death of the deceased, i.e., the income of the earlier year was assessed. Hence, the ITR was the latest and the last prior to the death of the deceased.
The court noted that the ITR was required to be considered to assess the income as well as the future prospective income. As per the ITR, the yearly income is assessed. Taking into consideration the total number of dependents, 1/3rd of the amount is required to be deducted as personal expenses of the deceased.
The court held that the claimants are entitled to receive compensation. The insurance company is directed to deposit the amount within a period of ten weeks.
The court directed that from the date of application to the date of the award of the Tribunal, the amount shall be deposited with 9% interest per annum, and from 1st July 2018 till the date of the order, the amount shall be deposited with 7.5% interest per annum.
Case Title: Sonalben Alias Charmiben Hirenbhai Jivani Versus Naranbhai Chananbhai Babariya
Citation: R/FIRST APPEAL NO. 4516 of 2018
Citation: 2022 LiveLaw (Guj) 381
Counsel For Appellant: Advocate Monal S Chaglani
Counsel For Respondent: Advocate Dakshesh Mehta