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Calcutta HC Enhances Motor Accident Compensation After Accepting Pre-Death ITRs

Case Law Details

TaxGuru Citation
2026 taxguru.in 5924
Case Name
Asit Dutta Vs Bajaj Allianz General Ins. Co. Ltd. & Anr. (Calcutta High Court)
Date of Judgement/Order
Only available for paid members
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Asit Dutta Vs Bajaj Allianz General Ins. Co. Ltd. & Anr. (Calcutta High Court)

The Calcutta High Court enhanced compensation awarded in a motor accident claim case after holding that the Income Tax Returns (ITRs) filed prior to the victim’s death established her earning capacity and could not be viewed with suspicion.

The claimant had filed a case under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the death of his wife in a road accident that occurred on 01.01.2020. According to the case, the victim was walking along Aurobindo Sarani when an auto-rickshaw allegedly driven rashly and negligently hit her from behind. She sustained grievous injuries and later died in hospital on the same day.

The Trial Court allowed the claim petition and awarded compensation of ₹20.34 lakh along with interest at 6% per annum. The claimant challenged the award before the High Court, contending that the Trial Court wrongly assessed the yearly income at ₹2.40 lakh and incorrectly deducted 50% towards personal expenses.

The Insurance Company argued that only two years’ ITRs had been produced and therefore no error had been committed by the Trial Court.

Upon examining the evidence, the High Court observed that the ITR for assessment year 2019-20 had been filed on 07.08.2019, prior to the victim’s death, while the return for assessment year 2020-21 was filed later. The Court noted that this was not a case where the first ITR was filed after death. It further observed that accounts had been maintained and produced along with the returns, and an officer from the Income Tax Department had also been examined. Accordingly, the Court held that the ITRs could not be treated with suspicion.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,612

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