Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Last Income Tax Return as Evidence - The last filed income tax return of the deceased or claimant is considered a crucial statutory document for determining annual income in MACT claims. Reliance on the last available return, especially if filed just prior to the date of death, is generally upheld by courts for accuracy and reliability ["National Insurance Co. Ltd. VS Manju Baishya W/o Late Hiren Patowary - Gauhati"], ["SANDHYA RANI JANA AND ANR. vs ICICI LOMBARD G.I CO. LTD. AND ANR. - Calcutta"], ["Payari Devi, W/o. Sri Nathuni Singh vs Manoj Kumar Jain, S/o. Late Praksh Chand Jain - Gauhati"], ["S.SASIKALA vs M/S.SHAKHI ENTERPRISES - Madras"], ["Cholamandalam MS General Insurance Company Ltd. VS Kalpana Kumari Deka W/o Late Ramen Deka - Gauhati"].
Timing of Filing - Income tax returns filed after the date of death are typically not admissible as evidence for determining income, unless they pertain to the period prior to death or are accepted as valid by the authorities. The courts emphasize that income tax returns filed posthumously without proper verification are not to be relied upon ["National Insurance Co. Ltd. VS Manju Baishya W/o Late Hiren Patowary - Gauhati"], ["ICICI LOMBARD GENERAL INSURANCE COMPANY LTD vs MRS. HUNPAHI AHOM and 3 ORS - Gauhati"], ["ICICI Lombard General Insurance Company Ltd. vs Hunpahi Ahom and Ors W/o Late Purna Kanta Ahom - Gauhati"], ["Ritu Agrawal vs Manager, Sriram General Insurance Company Ltd. - Patna"].
Last Return as Primary Evidence - Courts often prefer the last income tax return filed before the death of the deceased for calculating the income, considering it the most recent and relevant statutory declaration of income ["National Insurance Co. Ltd. VS Manju Baishya W/o Late Hiren Patowary - Gauhati"], ["SANDHYA RANI JANA AND ANR. vs ICICI LOMBARD G.I CO. LTD. AND ANR. - Calcutta"], ["Payari Devi, W/o. Sri Nathuni Singh vs Manoj Kumar Jain, S/o. Late Praksh Chand Jain - Gauhati"], ["S.SASIKALA vs M/S.SHAKHI ENTERPRISES - Madras"].
Disregard of Post-Death Returns - Income tax returns filed after the death, especially if not corroborated by other evidence, are generally not accepted for income determination in MACT proceedings. Courts have observed that reliance on such returns is against legal principles ["National Insurance Co. Ltd. VS Manju Baishya W/o Late Hiren Patowary - Gauhati"], ["ICICI LOMBARD GENERAL INSURANCE COMPANY LTD vs MRS. HUNPAHI AHOM and 3 ORS - Gauhati"], ["ICICI Lombard General Insurance Company Ltd. vs Hunpahi Ahom and Ors W/o Late Purna Kanta Ahom - Gauhati"].
Court’s Approach to Income Estimation - When income tax returns are unavailable or deemed unreliable, courts may estimate income based on other evidence like bank statements, salary certificates, or industry standards. However, if a valid and recent income tax return is available, it forms the primary basis for income assessment ["National Insurance Co. Ltd. VS Manju Baishya W/o Late Hiren Patowary - Gauhati"], ["SANDHYA RANI JANA AND ANR. vs ICICI LOMBARD G.I CO. LTD. AND ANR. - Calcutta"], ["Payari Devi, W/o. Sri Nathuni Singh vs Manoj Kumar Jain, S/o. Late Praksh Chand Jain - Gauhati"].
Analysis and Conclusion:The consensus across the cited cases is that the last income tax return filed prior to the deceased’s death is regarded as the not consolidated or primary statutory document for computing income in MACT claims. Returns filed after death are generally not admissible unless explicitly accepted by the court, and reliance on such returns is discouraged. Courts prefer the most recent, authentic, and contemporaneous income tax return for accurate assessment of the deceased’s income ["National Insurance Co. Ltd. VS Manju Baishya W/o Late Hiren Patowary - Gauhati"], ["SANDHYA RANI JANA AND ANR. vs ICICI LOMBARD G.I CO. LTD. AND ANR. - Calcutta"], ["Payari Devi, W/o. Sri Nathuni Singh vs Manoj Kumar Jain, S/o. Late Praksh Chand Jain - Gauhati"]. Therefore, in determining claims under the MACT Act, the last filed income tax return before death is considered the main evidence, and any posthumous filings are typically disregarded unless proven otherwise.
In motor accident compensation cases under the Motor Accidents Claims Tribunal (MACT) Act, determining the deceased's or claimant's income is crucial for calculating just compensation. A common question arises: Last income tax return of the claimant shall be considered not consolidated IT return while determining claim under MACT Act?
Claimants often worry whether only a consolidated Income Tax Return (ITR) is acceptable or if the last filed ITR—regardless of its form—suffices as evidence. This blog post explores the legal position, drawing from Supreme Court precedents and related judgments, to clarify this issue. While this provides general insights, consult a legal professional for case-specific advice.
The last income tax return of the claimant is generally considered a reliable and statutory document for determining the deceased’s income under the MACT Act. Courts have ruled that it need not be a consolidated ITR. Anjali VS Lokendra Rathod - 2022 8 Supreme 726Nidhi Bhargava VS National Insurance Company Ltd. - 2025 0 Supreme(SC) 671
The Supreme Court has emphasized: The Income Tax Return is a statutory document on which reliance be placed, where available, for computation of the annual income.Anjali VS Lokendra Rathod - 2022 8 Supreme 726 Similarly, The determination of income must proceed on the basis of the income tax return, where available.Nidhi Bhargava VS National Insurance Company Ltd. - 2025 0 Supreme(SC) 671
This principle ensures fair compensation without unnecessary technical hurdles.
These points stem from consistent judicial interpretations prioritizing statutory documents over speculative assessments.
Under the Motor Vehicles Act, 1988, tribunals must compute just compensation based on reliable evidence. ITRs qualify as such because they are filed under the Income Tax Act, 1961 (Sections 139, 44AB). The Supreme Court in Anjali VS Lokendra Rathod - 2022 8 Supreme 726 clarified that tribunals and High Courts err by ignoring the deceased's ITR, which reflected actual income for 2009-2010.
In Vinodbhai Hasmukhbhai Patel VS Hiren Kantibhai Bhavsar - 2023 Supreme(Guj) 424, the court relied on the highest ITR (Rs.97,235/-) over the tribunal's averaged Rs.60,000/- estimate, enhancing compensation accordingly. Even agricultural income not shown in ITRs can be supplemented by evidence, but ITR remains foundational.
No judgment mandates a consolidated ITR. In Anjali VS Lokendra Rathod - 2022 8 Supreme 726, the court explicitly upheld a standard ITR: The Tribunal and the High Court erred by disregarding the ITR filed by the deceased, which reflected his actual income.Anjali VS Lokendra Rathod - 2022 8 Supreme 726Nidhi Bhargava VS National Insurance Company Ltd. - 2025 0 Supreme(SC) 671 confirm sufficiency without consolidation.
Related cases reinforce this. In S.SASIKALA vs M/S.SHAKHI ENTERPRISES - 2021 Supreme(Online)(MAD) 22373, the income tax return submitted by the deceased just prior to his death determined income at Rs.10,25,385/-. Similarly, National Insurance Co. Ltd. VS Shadab Ahmad - 2018 Supreme(All) 2538 used ITRs for 2014-15 and 2015-16 to fix annual income at Rs.3,00,000/-.
Courts favor the last ITR for the assessment year closest to the accident. Averaging multiple years is deprecated if a clear last return exists. In Sheela Devi VS Sumit Kumar - 2022 Supreme(All) 433, taking means of three years' ITRs was held improper; the last year's return governs, per Sangita Arya (Supreme Court).
Pepakayala Nagaratnam, W/o. Dharmacharka Narayana Rao vs N.Raghunadha S/o N.S.Naidu - 2025 Supreme(AP) 695 considered an ITR showing Rs.1,86,480/- income (gross Rs.2,16,000/-). Union Of India VS Alka Tyagi - 2022 Supreme(All) 431 factored ITR alongside salary evidence, adjusting for future prospects (20% addition per U.P. Rules).
While ITRs are preferred, courts may adjust for authenticity issues or supplementary evidence (e.g., agricultural income in Vinodbhai Hasmukhbhai Patel VS Hiren Kantibhai Bhavsar - 2023 Supreme(Guj) 424). However, absence of consolidation doesn't invalidate it. In SAURABH KUMAR GUPTA @ SAURABH GUPTA VS NEW INDIA ASSURANCE CO. LTD. - 2017 Supreme(Del) 296, claimants argued for the latest ITR (2005-06) over earlier ones, highlighting judicial scrutiny of the most recent filing.
Tax on compensation interest is another angle: Nirmal Devi @ Nirmal Verma vs Union of India - 2023 Supreme(P&H) 3519 deems MACT interest a capital receipt, non-taxable under IT Act, resolving conflicts in favor of social welfare.
Tribunals should weigh ITRs heavily unless disputed with strong proof.
The last ITR, non-consolidated or otherwise, is typically reliable for MACT income determination, as affirmed by the Supreme Court. Anjali VS Lokendra Rathod - 2022 8 Supreme 726Nidhi Bhargava VS National Insurance Company Ltd. - 2025 0 Supreme(SC) 671 This streamlines claims, ensuring compensation reflects true loss.
Key Takeaways:- Prioritize the last filed ITR—it's statutory gold.- No need for consolidation; standard returns suffice.- Courts enhance awards when tribunals undervalue ITRs.- Integrate with other evidence for robustness.
This is general information based on precedents; outcomes vary by facts. For personalized guidance in MACT proceedings, engage a specialized lawyer.
References:1. Anjali VS Lokendra Rathod - 2022 8 Supreme 726: Reliance on 2009-10 ITR.2. Nidhi Bhargava VS National Insurance Company Ltd. - 2025 0 Supreme(SC) 671: ITR as basis for income.3. Vinodbhai Hasmukhbhai Patel VS Hiren Kantibhai Bhavsar - 2023 Supreme(Guj) 424: Highest ITR priority.4. S.SASIKALA vs M/S.SHAKHI ENTERPRISES - 2021 Supreme(Online)(MAD) 22373: Pre-death ITR decisive.
#MACTClaims, #ITRinMACT, #MotorAccidentLaw
As per the income tax return for the year 2007-2008, the last gross total income of the deceased was Rs. 1,41,802/-. For the income tax return of the year 2008-2009, the last gross total income of the deceased was Rs. 2,11,975/-. ... As per judgment of the learned Tribunal, the claimant has furnished the income tax return of the deceased for th....
to have considered the annual income of Rs. 3,18,470/- on the basis of income tax return for AY 2014-2015. ... This is not a case where the Income Tax Return is filed after instituting the claim case thus there is no question of inflating the income. ... application till full liquidation by issuing one A/C payee cheque in the name of the claimant no. 1 Sandhyarani Jana u/s 166 of....
Interest @6% on the enhanced amount-difference amount shall be paid from the date of claim application. ... Even though agricultural income was not shown in the income tax return, it emerges from the evidence that the deceased was also doing agricultural work.” 14. ... To the benefit of the appellants, the High Court has proceeded on the basis of the income tax return for the assessment year 1997-1998 and #HL_START....
Sub Section 3 (ix- a) says that tax to such income paid by way of interest on compensation amount awarded by MACT shall not be deducted where such income received during financial year does not exceed Rs.50,000/-. ... Sub Section 3 (ix) of this Section is also important which says that tax shall not be deducted to such income, credited by way of interest on the compensation amount awarded by #HL_S....
Point: Under Section 168 of the MOTOR VEHICLES ACT , 1988 (for short "the Act"), the Claims Tribunal shall give the parties an opportunity of being heard, hold an inquiry into the claim and make an award determining just compensation, etc. ... Ex.A6/Income Tax return submitted on 12th October, 2006 is indicating income at Rs.1,86,480/-. Tax at Rs.12,542/-. Gross income is at Rs.2,16,000/-. The #H....
It is contended that although the claimant produced both, a salary certificate and the Income-Tax Returns (ITRs) of the deceased, the Tribunal rejected the salary certificate for want of proof and did not take into account the exhibited ITRs while determining the income of the deceased. ... The income tax return is a statutory document on which reliance may be placed to determine the annual income of the deceased. ....
Although the claimant/ respondent claimed that the income of the deceased was Rs. 15,000/- per month, and filed income tax return in support of the same, the authenticity of the Income Tax return was categorically denied by theopposite party.It was therefore necessary for the claimant to prove the income ... The respondent no. 1/claimant filed a case under Section 166 of the Motor Vehic....
The Income Tax Return for the years 2014-2015 and 2015-2016, which depicts income of the claimant at Rs.3,29,242/- and Rs.3,03,765/- have been relied upon for determining the annual income of claimant as Rs.3,00,000/-per year. ... The claimant alleges his income to be Rs. 07 lacs per annum on the basis of Income Tax Return submitted by him. 3. ... If a Chartered....
Although the claimant/ respondent claimed that the income of the deceased was Rs. 15,000/- per month, and filed income tax return in support of the same, the authenticity of the Income Tax return was categorically denied by the opposite party.It was therefore necessary for the claimant to prove the income ... The respondent no. 1/claimant filed a case under Section 166 of the Motor Vehi....
Even otherwise, the income tax return submitted by the deceased just prior to his death will be the determining factor for the purpose of computing the loss of income. ... In the present case, the income tax return filed for the year 2017-2018 will be the determining factor for the purpose of awarding compensation to the claimants. Accordingly, we fix the sum of Rs.10,25,385/- as the annual income of the deceased. ....
He was Director with Dr. Tyagi Lab Pvt. Ltd. for which he used to get salary of Rs. 1,80,000/-per annum. The income-tax return have been also considered and it was on the basis of the income-tax return that his income was considered by this High Court while remanding the matter as well as the Tribunal. 1/4th has been deducted as personal expenses looking to the legal heirs of deceased. The Tribunal considered his income to be Rs.6,27,121/-per annum and added only 10% whereas the U.P. Motor Vehicles Rules, 1998 amended in 2011 obliged to add 20% for future loss of income.
To which as the deceased was in the age bracket of 46-50, 25% of the income will have to be added in view of the decision of the Apex Court in Pranay Sethi (Supra). The amount under non-pecuniary heads should be at least Rs.1,00,000/- in view of the decision in Pranay Sethi (Supra) as every three years 10% be added to Rs.70,000/-. The Tribunal has assessed his income to be Rs.3,58,676/-per year which according to this Court, in the year of accident, would be at least Rs.4,00,000/-per year looking to his vocation and the income tax return as per decision of Apex Court in Sangita Arya and Othe....
5. In respect of AY 2016-17, the assesses filed the original return of income under 139(1) of the I.T Act on 14-10- 2016 within the due date. Hence, the only return of income that is relevant and that can be looked into is the last revised return of income filed within the stipulated time. Hence, the only return of income that is relevant and that can be looked into is the last revised return of income filed within the stipulated time. The law allows an assessee to file more than one revised return of income as long as it is done within the stipulated time....
(1) Sale Tax registration; (2) Sales Tax return last three years; (3) Income Tax return last three years; (4) Balance Sheet last three years; (5) Stock register; (6) copy of FIR; (7) Fire Brigade report etc. In the said letter, the Surveyor has demanded some documents related to the insureds shop, i.e. This letter was also signed by the respondent-complainant (paper No. 14/11 on the District Forum's record).
It is submitted that the compensation granted under the non-pecuniary heads is on the lower side and it needs to be suitably enhanced. It is submitted that interest of 7.5% p.a. granted is on lower side and the reasonable rate of interest which ought to have been granted is 9% p.a. 4. Mr. S.P. Singh Chaudhary, Advocate for Claimant- Dr. Saurabh Kumar Gupta, submits that income tax return of the year 2005-06 has not been considered while assessing the income of the deceased and income tax return of the earlier year i.e. 2004-05 has been considered and infact, the subsequent income t....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
