Skip to main content

Real income for compensation can be determined from Form-16 issued by employer

Cause Title : Anjali Vilas Deshpande vs Prabha Rajendra Gupta, First Appeal No. 17 Of 2022, Bombay High Court

Date of Judgment/Order : 18th November 2022

Corum : G.S. Patel & Gauri Godse, JJ.

Citied: 

  1. Sarla Varma and others v DTC and another, (2009) 6 SCC 121
  2. National Insurance Company Limited v Pranay Sethi, (2017) 16 SCC 680
  3. Magma General Insurance Company Ltd v Nanuram, (2018) 18 SCC 130

Background

Appeal was filed by the Appellant/claimants was the compensation allowed by the Tribunal. The said compensation was based on the salary of the deceased as well as his possible promotion. The Appellant claimed that the tribunal had erred in relying only on the last drawn salary slip of the deceased and refused to consider the income of the deceased as per Form 16 which is submitted under the Income Tax Act. The Appellant/claimants relied upon last letter issued by the employer which revealed that the employer had revised the salary of the deceased few months before the accident.

The insurer objected to the nature of the job and income of the deceased as claimed by the Appellant/claimants. 

Judgment

The High Court observed that the Tribunal has considered as to whether the income of the deceased is to be calculated as per the last drawn salary slip or as per Form 16 and recorded that the Form 16 showed much more income than the the last month salary of the deceased. The Tribunal had also considered the last letter issued by the employer which indicated revision of the salary of the deceased due to good performance but decided not to include the additional amount (allowance / perks) which was in the Form 16 cannot be considered as permanent source of income of the deceased as there were always ups and downs in the progress of business. Therefore, the only earning of the deceased taken into consideration by the Tribunal was as per the last drawn salary.

The HC disagreeing with Tribunal held that  Form 16 is a reliable piece of evidence to determine the real income of the deceased as the same has been signed and generated by the employer of the deceased. The income shown in the Form 16 is attributable to the amounts earned by the deceased from his employer and there is no evidence produced by the Respondents to show that the income of the deceased was contrary to what is shown in Form 16. 

The HC observed that evidence and documents produced on record shows that over and above the basic salary, the deceased was also entitled to an additional remuneration on account of his performance and thus there is no reason to disbelieve that the deceased would have been always entitled to additional remuneration. Whenever a Tribunal or a Court fixes an amount of compensation in cases of accident, it involves some guess work, some hypothetical consideration and certain amount of sympathy.

Comments

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more