Sayar vs Ramkaran - Motor Accident Compensation - Income Tax Returns

Motor Accident Compensation - MACT and High Court found that Income Tax return was not proved and was not genuine, mainly on the grounds that it had been filed posthumously and that there were certain variations in the signatures of the deceased on the said return- In Appeal, SC observed: Income Tax Returns filed after the accident/death can also be taken into consideration for calculation of income to award compensation. However, having due regard for the Tribunal’s well-placed doubts, in so far as returns filed for the relevant year, we take a different approach. In the instant case, it cannot be simply assumed that there is no profit accruing from the business of the deceased at the time of the accident. To adopt such a presumption would be contrary to the settled principles guiding the assessment of compensation. Rather, the returns for the preceding year or years must be taken as a foundational benchmark, subject to careful judicial examination, recognizing that business profits are seldom static and often exhibit a progressive growth trajectory. The exercise thus calls for a fair and reasonable assessment, grounded in available evidence, of the financial benefits that the deceased would have justifiably earned but for the untimely accident/