Motor accident compensation can be enhanced using lifetime tax evidence to prove higher actual income and loss calculations.

In a motor accident compensation claim, the deceased's income may be reassessed on the basis of lifetime tax payments, tax deducted at source, assessment records and surrounding business evidence, even if posthumous tax returns appear inconsistent. The note explains that such returns are not conclusive where proved facts show substantially higher actual earnings. Applying a one-fourth deduction for personal expenses, a multiplier of 15 and conventional amounts for funeral and non-pecuniary losses, the compensation was enhanced with interest on the increased sum and apportionment among dependants.

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Issues: Whether the compensation awarded by the Tribunal required enhancement on the basis of the deceased's proved income and whether additional amounts were payable under conventional heads.

Analysis: The deceased's income was reassessed with reference to the material showing substantial advance tax and tax deducted at source paid during his lifetime, the assessment order under the Income-tax Act, and his business/professional profile. The Court treated the posthumous income-tax returns with caution, but held that they could not be ignored where the surrounding evidence established that the deceased had in fact earned substantially more than the income fixed by the Tribunal. The Court applied a one-fourth deduction for personal expenses, accepted the multiplier of 15 having regard to the age of the deceased, and added conventional sums towards funeral expenses and non-pecuniary damages.

Conclusion: The compensation was enhanced substantially and the appeal succeeded.

Final Conclusion: The award was modified by increasing the compensation, with interest on the enhanced amount and apportionment among the dependants.

Ratio Decidendi: For determining compensation in a motor accident claim, the deceased's lifetime tax payments and reliable surrounding evidence may justify reassessment of income, and posthumous tax returns are not conclusive if they are inconsistent with proved facts.

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