3-Year ITR Average Governs Self-Employed Income Assessment for Compensation: SC

Rajani & Ors. Vs Mukesh & Ors. (Supreme Court of India) The Supreme Court allowed a civil appeal filed by the legal representatives of a deceased insurance agent and enhanced the motor accident compensation to Rs.87,09,282, holding that the annual income of a self-employed person should be assessed by taking the average of the previous three Income Tax Returns (ITRs), having regard to the nature of the profession. The Court held that the High Court erred in taking the average income reflected in the last four ITRs and applied the principles laid down in Rashmirekha Tripathy and Anr. v....