TaxTMI 
TaxTMI 
2007 (12) TMI 538
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....ion before the learned Tribunal. A salary certificate was produced in the said proceedings which is in the following terms : Earnings Amount Deductions Amount Basic 3420.00 CPF(S) 488.00 Special Pay 70.00 CPF (Add) FDA 350.00 GIS 3.75 VDA 1040.00 LIC/GIS 509.10 CCA 100.00 HRR HRA 1047.00 MSPI 60.00 Washing All. 75.00 Society 576.00 Conv. 225.00 Union 3.00 Cant.sub. 265.00 HBA 340.00 C.E.A. 2040.00 B.Fund 10.00 Total 8632.00 Total 1989.85 3. The learned Tribunal opined that in computing his income, the element of conveyance allowance only would fall outside the purview of income. On the aforementioned basis, the monthly income of the deceased was assessed at Rs. 20364/-. Applying the multiplier of 13, as the age of the deceased was 45 years, it was held : "As such, on using multiple of 13 to the annual income of deceased at Rs. 2,32,372/-, the amount works out to Rs. 30,20,836/-. The deceased would have spent 1/3rd of this amount on himself, hence....
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....ate as, for example, voluntary retirement, superannuation etc. which would be beneficial to the entire family. It was pointed out that the contributions towards Provident Fund, Life Insurance Corporation, gratuity etc. are includable in the definition of income. 8. The term 'income' has different connotations for different purposes. A court of law, having regard to the change in societal conditions must consider the question not only having regard to pay packet the employee carries home at the end of the month but also other perks which are beneficial to the members of the entire family. Loss caused to the family on a death of a near and dear one can hardly be compensated on monetory terms. 9. Section 168 of the Act uses the word 'just compensation' which, in our opinion, should be assigned a broad meaning. We cannot, in determining the issue involved in the matter, lose sight of the fact that the private sector companies in place of introducing a pension scheme takes recourse to payment of contributory Provident Fund, Gratuity and other perks to attract the people who are efficient and hard working. Different offers made to an officer by the employer, same ma....
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....ads and the contribution is always repayable to an employee at the time of voluntary retirement, death or for any other reason. Such contribution made by the salaried person are deferred payments and they are savings. The Supreme Court as well as various High Courts have held that the compensation payable under the Motor Vehicles Act is statutory and that the deferred payments made to the employee are contractual. Courts have held that there cannot be any deductions in the statutory compensation, if the Legal Representatives are entitled to lumpsum payment under the contractual liability. If the contributions made by the employee which are otherwise savings from the salary are deducted from the gross income and only the net income is taken for computing the dependancy compensation, then the Legal Representatives of the victim would lose considerable portion of the income. In view of the settled proposition of law, I am of the view, the Tribunal can make only statutory deductions such as Income tax and professional tax and any other contribution, which is not repayable by the employer, from the salary of the deceased person while determining the monthly income for computing the depe....
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.... Special Pay 70.00 CPF (Add) FDA 350.00 GIS 3.75 VDA 1040.00 LIC/GIS 509.10 CCA 100.00 HRA HRA 1047.00 MSPI 60.00 Washing All. 75.00 Society 576.00 Conv. 225.00 Union 3.00 Cant.Sub. 265.00 HBA 340.00 C.E.A. 2040.00 B.Fund 10.00 Total 8632.00 Total 1989.85 15. We may, however, notice that a Division Bench of this Court in Asha & Ors. v. United Indian Insurance Co. Ltd. & Anr. [2004 ACC 533], whereupon reliance has been placed by Mr. Satija, was considering a case where, like the present one, several perks were included in salary. We may reproduce the salary certificate hereto below : "This is to certify that Shri A.M. Raikar was working as AG 111 in this organisation has been paid the following Pay & Allowances for the month of May, 1995: Net Payable Rs. 6642.00 (Rupees six thousand six hundred forty two only)." In that case, this Court held : "Lastly it was submitted that the salary certificate shows that t....
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.... equivalent value. 25. In this context we may look at Section 128(1) also. It says that the right of any person to claim compensation before the Claims Tribunal as indicated in Section 124 or 124-A shall not affect the right of any such person to recover compensation payable under any other law for the time being in force. But there is an interdict that no person shall be entitled to claim compensation for more than once in respect of the same accident. This means that the party has two alternatives, one is to avail himself of his civil remedy to claim compensation based on common law or any other statutory provision, and the other is to apply before the Claims Tribunal under Section 124 or 124-A of the Act. As he cannot avail himself of both the remedies he has to choose one between the two. The provisions in Chapter XIII of the Act are intended to provide a speedier remedy to the victims of accidents and untoward incidents. If he were to choose the latter that does not mean that he should be prepared to get a lesser amount. He is given the assurance by the legislature that the Central Government is saddled with the task of prescribing fair and just compensation in the Rules fr....
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....ferred thereupon under the statute. 20. In N. Sivammal & Ors. v. Managing Director, Pandian Roadways Corporation & Ors. [(1985) 1 SCC 18], this Court took into consideration the pay packet of the deceased. 21. We may notice that in T.N. State Transport Corporation Ltd. v. S. Rajapriya & Ors. [(2005) 6 SCC 236], this Court held : "8. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables e.g. the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have lived or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income together. 9. The manner of arriving at the damages is to ascertain the net income of the deceased available for the support of himself and his dependants, and to deduct therefrom such part of his....