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Orissa HC Reduces Motor Accident Compensation as Income Tax Was Not Deducted

Case Law Details

TaxGuru Citation
2026 taxguru.in 5345
Case Name
Divisional Manager Vs Harapriya Behera & Others (Orissa High Court)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2024-25
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Divisional Manager Vs Harapriya Behera & Others (Orissa High Court)

Family Pension and Insurance Benefits Cannot Be Deducted From Motor Accident Compensation; Motor Accident Award Modified Because Tribunal Incorrectly Calculated Salary and Tax Liability; Ex-Gratia Death Relief Deductible From Compensation Because Claimants Admitted Receipt, Rules High Court; New Tax Regime Applied for Compensation Calculation Because It Was More Beneficial to Claimants.

The Orissa High Court considered an appeal filed under Section 173(1) of the Motor Vehicles Act challenging the judgment of the 2nd Motor Accident Claims Tribunal, Berhampur, directing the insurer to pay compensation of Rs.1,29,07,059 along with 6% interest to the legal representatives of a deceased Assistant Commandant who died in a motor vehicle accident on 20.08.2023. The deceased was travelling on a motorcycle when a truck allegedly driven rashly and negligently hit him from behind near Sangram Dhaba on NH-16, resulting in his death. A police case was registered and charge sheet was filed against the truck driver.

Before the Tribunal, the claimants sought compensation of Rs.1.45 crore. The insurer contested the claim alleging violation of policy conditions, while the owner of the offending vehicle did not participate in the proceedings. The Tribunal, after considering evidence led by the claimants, directed the insurer to pay compensation.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,910

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