Delhi High Court Upholds Reliance on Income Tax Return in Motor Accident Compensation Appeal

In a recent judgment, the Delhi High Court upheld the reliance on the deceased's Income Tax Return for the Assessment Year 2008-09 in a Motor Accident Compensation Appeal. The case involved a challenge to the Impugned Award of a Motor Accident Claims Tribunal, with the appellant disputing the quantum of compensation awarded to the respondent for loss of dependency.

In its observation, the High Court emphasized the importance of considering the Income Tax Return as a crucial document for determining the deceased's income, stating, "The Income Tax Return filed for the Assessment Year 2008-09, though filed after the accident, does not show any substantial increase in the income of the deceased. The only increase shown is found to be reasonable and genuine. It will reflect the income of the deceased more proximate to the date of the accident."

The judgment also cited precedent cases, including "Anjali & Ors. v. Lokendra Rathod & Ors., 2022 SCC OnLine SC 1683," which reaffirmed the significance of the Income Tax Return in calculating annual income for compensation purposes.

In light of these observations, the High Court dismissed the appeal, affirming the compensation determined based on the deceased's Income Tax Return. The court also upheld the recovery rights granted in favor of the appellant by the learned Tribunal.

 Date of Decision: December 20, 2023

NATIONAL INSURANCE CO LTD VS NISHI AND ORS