In a significant ruling, the Orissa High Court held that the income tax returns (ITR) is not the sole basis for consideration of the income of the deceased at the time of his death.
The appellants are the legal heirs of deceased Kali Charan Panda, filed a claim under Section 166 of the Motor Vehicles Act seeking compensation of ₹25,00,000/-. While travelling from Bhubaneswar to Berhampur in a Marshal vehicle, the deceased met with an accident near Narayani Chhak and died on the spot, while another passenger sustained grievous injuries.
By common judgment, the Tribunal awarded ₹2,65,000/- with 6% interest per annum. Aggrieved by the inadequacy of compensation, the appellants preferred the present appeal seeking enhancement.
The counsel for the appellants-claimants contended that the deceased Kali Charan Panda was having a monthly income of Rs.30,000/- and he was the Managing Director of Lucky Offset Private Limited as well as of daily newspaper “Anupam Bharat” and “Lucky Furnitures”. It was further submitted that the Tribunal has not taken into consideration the aforesaid facts while assessing the income of the deceased at the time of his death due to motor accident.
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The counsel appearing for the Insurance Company supported the observation in the judgment and award passed by the Tribunal. It was submitted that the Tribunal had assessed the compensation on the basis of the evidence available on record and, after considering the Income Tax Return of the deceased, had rightly determined his annual income at ₹25,000/- at the time of the accident.
According to the Insurance Company, the Tribunal had committed no illegality or error in determining the income or the resultant compensation.
Justice A.K. Mohapatra observed that “This Court, on a careful analysis of the entire factual scenario as well as the evidence led by the Claimants with regard to the avocation of the deceased, is of the view that the Tribunal misdirected itself by entirely relying upon the Income Tax Returns of the deceased.”
Modifying the awarded amount the Court noted that “Although the avocation of the deceased has been mentioned, however, there is no clear evidence with regard to the monthly or annual income of the deceased, except the Income Tax Returns filed on behalf of the Claimants. The Income Tax Returns cannot form the sole basis for consideration of the income of the deceased at the time of his death.”
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Sumati Panda vs Mrs. Renubala Acharya
CITATION : 2026 TAXSCAN (HC) 1463Case Number : CNR No. ODHC010017512009Date of Judgement : 02 September 2026Coram : ADITYA KUMAR MOHAPATRACounsel of Appellant : Biranchi Narayan RathCounsel Of Respondent : Netaji Sabyasachi Ghose
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