In a major setback to the Oriental Insurance Company Limited, the appellant, a Single Bench of the Calcutta High Court upheld Motor Accidents Claims Tribunal (MACT) compensation assessment after statutory deduction of Income Tax Return (ITR).
The claim petition under Section 166 of the Motor Vehicles Act was filed, on account of death of Vinay Kumar Agarwal in a motor accident while he was travelling as pillion rider and was knocked down by the vehicle (Tipper) as a result, he died.
At the time of death deceased was aged about 56 years having income of Rs. 2 lakhs per annum from his commission agent business for supply materials to different companies. Accordingly, claimants i.e. widow of deceased and her daughter filed claim application with a prayer for compensation to the tune of Rs. 14 lakhs.
Though owner of the offending vehicle did not contest the case but oriental Insurance company i.e insurer of the offending vehicles contested the case by filing written statement denyingall material averments of the claim petition contending, inter alia, that Insurance Company is not liable to pay compensation.
After considering the evidence on record the Tribunal assessed the compensation of Rs. 11 lakhs taking the annual income of Rs. 2 lakhs after statutory deduction in terms of Income Tax Return.
Sanjay Paul, appearing on the behalf of the appellant/Insurance Company has submitted that Learned Tribunal ought to have considered the Income Tax Return submitted by the deceased himself prior to his accidental death, for the purpose of assessing the income of the deceased, at the time of death.
SaidurRahaman, appearing on behalf of the respondent/claimants have contended that Learned Tribunal assessed all the evidences including the statement of commission and consider the income of the deceased in terms of Income Tax Return showing income of the deceased while he was alive.
The Bench of Justice Bibhas Ranjan De observed that “After careful scrutiny of all Income Tax Return, it appears that income of deceased increased every year and lastly income of the deceased has been reflected in the Income Tax Return only submitted by the widow of the deceased. Therefore, the Income Tax Return submitted by the wife of the deceased shows the income of the deceased prior to his death. I am unable to interfere with judgment and award passed by the Learned Tribunal in connection with Motor Accident Claim Case.”
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