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HC Enhances MACT Compensation by Relying on Three Years’ Income Tax Returns

Case Law Details

TaxGuru Citation
2026 taxguru.in 10399
Case Name
Smt Athika Banu Vs Manasa Rai (Karnataka High Court)
Date of Judgement/Order
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Smt Athika Banu Vs Manasa Rai (Karnataka High Court)

The Karnataka High Court considered an appeal filed by the claimants seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal (MACT), Mangaluru, in its judgment and award dated 20.09.2022 in MVC No.927/2018. The claim arose from the death of Abdul Hameed alias Hameed Kasim in a road traffic accident that occurred on 14.11.2017 due to the rash and negligent driving of a Tempo Traveler. The claimants were the deceased’s wife and son. The Tribunal had awarded total compensation of Rs.11,99,000, comprising Rs.10,89,000 towards loss of dependency, Rs.40,000 towards spousal consortium, Rs.40,000 towards parental consortium, and Rs.30,000 towards loss of estate and funeral expenses, together with interest at 6% per annum from the date of the petition.

Before the High Court, the claimants contended that the deceased, aged 52 years, was running a sticker cutter business under the name “Fami Arts” and had produced income tax returns for three years. They submitted that the Tribunal erred in ignoring the income disclosed in those returns and instead adopting a notional monthly income of Rs.15,000. They further argued that, since the dependants were the wife and son of the deceased, deduction towards personal expenses should have been one-third instead of 50%. They accepted the Tribunal’s application of 10% towards future prospects and multiplier of 11, and sought enhancement accordingly.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,175

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