Income Tax Returns constitute statutory evidence for determining annual income and assessment of loss of dependency.

The claimants filed an appeal seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal (Main), Banaskantha at Palanpur in MACP No. 93 of 1993.

On August 30, 1992, a luxury bus (GRW-9403) carrying pilgrims plunged into a gorge near Trishuliya Ghat due to the driver’s loss of control, resulting in the death of the deceased and seven others.

The Tribunal originally awarded Rs. 6,07,000/- with 7.5% interest.

The appellants contended that the Tribunal erred by assessing the deceased's annual income at Rs. 40,000/- despite Income Tax Returns (ITR) showing Rs. 1,00,000/- and failed to award adequate sums for future prospects and consortium.

1. Whether the Tribunal erred in disregarding the Income Tax Returns of the deceased while assessing the annual income for compensation.

2. Whether the claimants are entitled to additional compensation under the heads of future prospects, loss of consortium, and conventional heads (estate and funeral expenses).

Income Tax Returns are statutory documents and must be relied upon for the determination of annual income, as established in Smt. Anjali and Ors. v. Lokendra Rathod and Ors. (2022).

The calculation of future prospects (40% addition for deceased under 40 years) and funeral/estate expenses follows National Insurance Co. Ltd. v. Pranay Sethi.

Award of "parental, spousal, and filial consortium" to all legal representatives (Rs. 40,000 each plus 10% increment) as per Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram.

The High Court found the Tribunal’s assessment of Rs. 40,000/- annual income "manifestly erroneous" given the ITR evidence (Exhibit-36) proving an income of Rs. 1,00,000/-.

The Court rejected the Insurance Company’s argument that no loss occurred because the partnership firm continued, noting that the death of a partner necessitates reconstitution and results in the loss of "supervisory income".

Applying the standard multipliers and deductions—40% for future prospects, 1/4 deduction for personal expenses (due to 5 dependents), and a multiplier of 15—the Court recalculated the dependency loss to Rs. 15,75,000/-.

The Court corrected the "meagre" awards for funeral and estate expenses to Rs. 18,150 each and awarded consortium to all five claimants.

The respondent Insurance Company was directed to deposit the additional amount of Rs. 12,46,300/- with interest at 7.5% per annum from the date of the claim petition until realization within six weeks.

The Tribunal was directed to disburse the amount to the claimants upon verification and deduction of deficit court fees.