Income Tax Returns filed prior to accident must be accepted as credible evidence for assessing deceased's income.

On August 15, 2015, the deceased was traveling in a motor car (GJ-3ER-5316) which collided with another vehicle (GJ-1KD-6171) while attempting to avoid a cow on the road.

The deceased sustained fatal injuries.

The Motor Accident Claims Tribunal (MACT), Rajkot, in MACP No. 889 of 2016, awarded compensation of ₹3,10,000/- by treating the deceased’s income as ₹8,000/- per month on a notional basis, despite an Income Tax Return (ITR) showing an annual income of ₹2,34,000/-.

The appellant (claimant) challenged this award seeking enhancement.

1. Whether the Tribunal erred in discarding the Income Tax Return of the deceased and assessing income on a notional basis.

2. Whether the deduction for personal and living expenses and the compensation under conventional heads were calculated in accordance with established legal precedents.

The Court applied the principle from *Malarvizhi v. United India Insurance Co. Ltd.* (2020) and *Nidhi Bhargava v. National Insurance Co. Ltd.* (2025), establishing that an ITR filed prior to an accident is a statutory document and a reliable benchmark for income assessment.

It followed *Sarla Verma v. DTC* (2009) and *National Insurance Co. Ltd. v. Pranay Sethi* (2017) regarding the application of multipliers and deductions for personal expenses.

Furthermore, it applied *Magma General Insurance Co. Ltd. v. Nanu Ram* (2018) to determine the appropriate quantum for conventional heads like loss of consortium and funeral expenses.

The Court found that the Tribunal’s dismissal of the ITR (Exhibit-63) solely because the deceased worked for a relative was legally unsustainable, as the return was filed prior to the accident and held statutory weight.

Consequently, the Court reassessed the annual income at ₹2,34,000/-.

While the Court upheld the multiplier of 5 and the decision not to grant future prospects due to the deceased’s age (80 years), it corrected the personal expense deduction from 1/2 to 1/3, noting the presence of two dependents.

Finally, the Court adjusted the awards under conventional heads (consortium, estate, and funeral expenses) to align with the current inflation-adjusted rates mandated by the Supreme Court.

The claimants are entitled to an additional amount of ₹5,54,500/- with interest as originally awarded by the Tribunal.

The Insurance Company was directed to deposit the additional sum within four weeks, subject to the deduction of deficit court fees on the enhanced amount.