The Calcutta High Court has ruled that Income Tax Returns (ITR) are essential for calculating compensation in motor accident cases, enhancing the award to the family of a deceased doctor.
ITR Essential for Compensation Calculations: Calcutta HC Rules
In a landmark decision, the Calcutta High Court has ruled that Income Tax Returns (ITR) constitute a statutory document necessary for computing compensation in motor accident cases. The court enhanced the compensation award to Rs. 1 Crore from the previous Rs. 30 Lakhs based on the ITR of the deceased and rejected claims based on salary slips alone.
Justice Biswaroop Chowdhury presided over the case, which arose from a fatal accident involving a doctor. The court emphasized the importance of ITR as a reliable indicator of earnings, thus holding significant weight in determining compensatory amounts.
Moreover, the court dismissed a delayed plea from New India Assurance Co. regarding liability implications due to the status of the deceased as a “gratuitous passenger.” This judgment reinforces the responsibility of insurance companies and the need for comprehensive financial evidence when asserting claims.
For legal practitioners, this decision underscores the critical role of financial documentation in compensation calculations and the importance of timely submitting claims supported by statutory documents.
Citations
- Calcutta HC (2026) Taxscan
