TaxTMI 
TaxTMI 
2019 (12) TMI 1692
X X X X Extracts X X X X
X X X X Extracts X X X X
....irst appeal and cross-objection from the decision of the Motor Accident Claims Tribunal [Tribunal], Ranipet. 2 The appellants are the heirs and legal representatives of Aranganathan who died as a result of a motor accident on 25 May 2001. He was travelling in an Ambassador car bearing Registration No TN 23 A 7549 which was being driven by another person. At about 12:45 am, a Tata Sierra car bearing Registration No TN 20 Z 1613 came from the opposite direction and dashed against the car of the deceased. Aranganathan was seriously injured and died during the course of the accident. He is survived by his wife and four daughters who are the appellants before this Court. 3 The appellants filed a claim petition under Section 166 of the Moto....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0,298. 30% was added to this towards future prospects bringing the annual income to Rs 5,98,387.40. After a deduction of 1/4th of the total income towards living expenses, the Tribunal used a multiplier of 13 to arrive at a compensation of Rs. 58,34,277. Damages under conventional heads, including funeral expenses, loss of consortium and loss of love and affection were computed at Rs 70,000. A total compensation of Rs 59,04,000 was awarded. 6 In appeal, the High Court concluded that on an analysis of the income tax returns filed by the deceased for the financial years 1995-1996 to 2000-2001, the income declared for the financial year 1997-1998 was the highest and must be taken as the annual income of the deceased. Hence, Rs 2,09,211....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... into account the turnover from his trade and wine business. 8 On the other hand, learned counsel for the respondents contended: (i) The High Court is justified in according precedence to the income tax returns of the deceased to determine his annual income; (ii) There is no merit in the contention that the appellant has suffered a loss on account of the sale of properties for the settling of the debt owed to banks; (iii) Depreciation on fixed assets cannot be added to the income of the deceased; and (iv) The award of the High Court is legally sustainable and calls for no interference by this Court. 9 The rival submissions fall for our consideration. 10 The Tribunal proceeded to determine the agr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....001 which reflected a reduction in the annual income of the deceased. 11 Learned Senior Counsel appearing on behalf of the appellants drew the attention of this Court to the judgment of this Court in New India Assurance Company v Yogesh Devi [(2012) 3 SCC 613] to contend that this Court may reasonably determine the income that accrues to the deceased and also compute the expenses incurred in the upkeep of agricultural land. In that case, a two judge Bench of this Court dealt with a claim where "there was no evidence regarding the amount of income derived from the abovementioned properties." The only evidence available in regard to the monthly income of the deceased was the statement of the claimant. In the present case, the High Court ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....avai Wines, Sholinghur for the assessment year 1997- 1998. An annual amount of Rs 1,04,987 is reflected as payment for a prepaid license fee to the Tamil Nadu Government. In the peculiar circumstances of the case, this amount, having been paid upfront and for a future period is to be added to the annual income of the deceased. Thus, the net annual income of the deceased is: Rs 2,11,131 + 1,04,987 = Rs 3,16,118. 14 The determination of the amount payable to the appellants is as follows: (i) The deceased was self-employed and aged 49 at the time of the accident. In accordance with the Constitution Bench judgment of this Court in National Insurance Company Limited v Pranay Sethi [(2017) 16 SCC 680], 25% of the annual income is to b....