The Gujarat High Court has enhanced compensation payable to the dependants of a man who died in a 2001 road accident, holding that Income Tax Returns (ITRs) filed after his death could be considered while determining his actual income.
Justice J. C. Doshi found that the Motor Accident Claims Tribunal had assessed the deceased’s monthly income at only Rs.3,000 despite the income-tax records produced by the claimants.
Background
Rajubhai Vadilal Shah died on November 17, 2001, after an ST bus allegedly collided with his scooter near Timaliyawad, Surat. His widow, children and mother subsequently filed a compensation claim of Rs.20 lakh.
The Motor Accident Claims Tribunal awarded Rs.6,01,400 with 9% annual interest. However, the claimants challenged the award, arguing that the Tribunal had failed to properly consider the deceased’s income-tax returns covering several years.
The High Court considered the Supreme Court’s recent ruling in Rashmirekha Tripathy, which recognised ITRs as an important reference for assessing income in motor accident compensation cases. The Supreme Court has also distinguished between salaried persons and self-employed individuals while considering income records.
The Gujarat High Court noted that the last three returns showed no substantial or unexplained rise in income merely because two had been filed after the deceased’s death. The Court therefore held that there was no absolute rule preventing consideration of posthumously filed returns.
“The income tax returns, which are filed posthumously, does not show any substantial hike in the income, it is consistent with the previous income of the deceased, as to showcase that those income tax return were filed with the oblique purpose of establishing the manufactured income of the deceased.”
The Court calculated the average net income from the three returns at Rs.71,576 per year. It also applied 25% towards future prospects, deducted one-fourth towards personal expenses, and applied a multiplier of 14.
The High Court determined the total compensation at Rs.12,17,742, compared with the earlier award of Rs.6,01,400. It consequently awarded an additional Rs.6,16,342 with 9% annual interest from the date of filing of the claim petition until realisation.
The appeal was allowed, and the Gujarat State Road Transport Corporation (GSRTC) was directed to deposit the enhanced amount before the Tribunal within eight weeks.
Case Details
Case Title: Heenaben Wd/o Rajubhai Vadilal Shah & Ors. v. Sarosh Jahangirji Dumasia & Anr.
Case Number: R/First Appeal No. 537 of 2016
Judge: Justice J. C. Doshi
Decision Date: September 18, 2026
