The central legal point established in the judgment is the significance of the latest Income Tax Return in determining 'just compensation' under the Motor Vehicles Act, emphasizing the need to consider the deceased's true income at the time of the accident.

JUDGMENT

Navin Chawla, J. (Oral)

1. This appeal has been filed challenging the order dated 23.12.2019 passed by the learned Motor Accidents Claims Tribunal, Patiala House Court (hereinafter referred to as the `Tribunal') in MACPNo. 231/2017 titled Smt. Raj Bala and Ors. v. Sh. Krishan Kumar Sharma @ Kishno and Ors.

2. The limited challenge to the Impugned Award raised by the learned counsel for the appellants is that the learned Tribunal has erred in taking the average of the income of the deceased disclosed in the Income Tax Returns (hereinafter referred to as the `ITR') filed for the Assessment Years 2014-15, 2015-16 & 2016-17, instead of the latest ITR, that is the ITR for the Assessment Year 2016-17, which also had been filed prior to the date of the accident.

3. Placing reliance on the judgment of the Supreme Court in Shashikala & Ors. v.Gangalakshmamma and Anr., (2015) 9 SCC 150, the learned counsel for the appellant submits that the Supreme Court has held that while awarding compensation under the Motor Vehicles Act, it is obligatory on the part of the Court to award "just compensation", considering the age of the deceased and the nature of business he was doing. The Supreme Court held that the latest Income Tax Return should have been taken by the High Court in that case for determining such "just compensation". He submits that in the present case as well, the learned Tribunal should have placed reliance only on the latest ITR of the deceased for determining his income.

4. On the other hand, the learned counsel for the respondent No. 3, placing reliance on the judgment of the Supreme Court in Sangita Arya and Ors. v. Oriental Insurance Company Ltd. & Ors., (2020) 5 SCC 327, submits that the Supreme Court had, in that case, determined compensation on the basis of the average of the ITRs filed for the Assessment Years 2005-06 & 2006-07. He submits that in case of a self-employed person, the average of the ITRs filed for the preceding years is a better and more reasonable manner of determining "just compensation" payable inasmuch as it does away with abrasions in the income for a particular year.

5. I have considered the submissions made by the learned counsels for the parties.

6. It need not be re-emphasized that the compensation awarded under the Motor Vehicles Act should be `just', `fair', and `reasonable., and for determining the same, no hard and fast rule can be laid down. In a given fact situation, the Tribunal may very well, for reasons to be recorded, not rely upon the latest Income Tax Return of the deceased and instead may adopt the return which in the opinion of the Tribunal would reflect the true income of the deceased, or may even adopt the average of the income disclosed in the ITRs of the deceased for the preceding few years. However, as a general rule, the latest Income Tax Return of the deceased filed before the date of the accident, except in cases where reasons are shown for disregarding the same, should be taken as a basis for determining the loss of income, as it would be more approximate to the date of the accident and reflect the current income of the deceased on the date of the accident. To give an example, an ITR filed for the Assessment Year 2021-2022 may be ignored on the ground that it may reflect deflated income of the deceased due to his business being affected by the restrictions imposed due to Covid-19 pandemic and that in such a case, the ITR for the Assessment Year prior thereto or an average of income disclosed in ITRs of one/two/three Assessment Years prior thereto may be found to be a more `just', `fair', and `reasonable' evidence to determine the income of the deceased. The latest ITR may also be disregarded where it is shown that it has reflected an abnormal increase in the income of the deceased due to some abrasion or exceptional event, like a windfall gain. However, ordinarily, the latest ITR would truly reflect the income of the deceased at the time of the accident, and sh