Motor accident compensation claims : Income Tax Returns carry a presumption of correctness unless proven otherwise.

Gauhati High Court Remands Motor Accident Claim for Reassessment of Deceased's Income Tribunal's Omission to Consider Income Tax Returns Leads to Case Reassessment for Fair Compensation

The Gauhati High Court has remanded a motor accident compensation case back to the Motor Accident Claims Tribunal for reassessment of the deceased's income. The judgment, delivered by Justice Kaushik Goswami, highlights the Tribunal's error in not considering the Income Tax Returns (ITRs) of the deceased, Karan Singh, while determining compensation for his family. Karan Singh, an electrician, tragically lost his life in a road accident on October 27, 2012.

The appellants, led by Smti Payari Devi, the deceased's mother, argued that the Tribunal's assessment of Karan Singh's monthly income at Rs. 4,500 was incorrect as it did not take into account the salary certificate and the ITRs, which were statutory documents proving higher earnings. The ITRs indicated that Singh was an income tax assessee, which reflects a higher income than the notional figure adopted by the Tribunal.

The High Court acknowledged that ITRs are public documents admissible as reliable evidence under Section 35 of the Indian Evidence Act, 1872. The court cited precedents from the Supreme Court, emphasizing that ITRs should be considered when assessing income in motor accident claims. Consequently, the High Court has directed the Tribunal to verify the income details further with the Income Tax Department and reassess the compensation amount accordingly.

The Tribunal is tasked with reviewing the ITRs and allowing both parties to provide additional evidence regarding the deceased's income. The reassessment is to be completed within three months, ensuring that the compensation awarded reflects the true income of the deceased.

Bottom Line:

Income Tax Returns (ITRs) are statutory documents and carry a presumption of correctness unless proven otherwise. They must be considered while assessing the income of a deceased in motor accident compensation claims.

Statutory provision(s): Motor Vehicles Act, 1988 Section 173, Evidence Act, 1872 Section 35

Smti Payari Devi v. Sri Manoj Kumar Jain, (Gauhati) : Law Finder Doc Id # 2805029