Accident – Reduction in compensation for filing IT Return after date of the incident – Illegal
On 12.8.2008, the bus hit the motor cycle driven by the businessman Kapil Bhargava along with his wife. The deceased died in the hospital and the appellant no.1 survived but suffered grievous injuries.
The Tribunal awarded compensation of Rs.31,41,000/- with interest.
The High Court, however, reduced the compensation to Rs.16,97,370/- on the ground that the IT Return for the Assessment Year 2008-2009 was filed after the date of the incident. The income had to be assessed on the basis of Assessment Year 2007-2008.
HELD that just because on the date of the accident i.e. 12.8.2008 the Income Tax Return for the Assessment Year 2008-2009 has not been filed cannot dis-advantage the appellants for the reason that the Return covers the period from 1.4.2007 to 31.3.2008. No income earned beyond 31.3.2008 would reflect in the IT Return for the Assessment Year 2008-2009. To reject the IT return on the sole ground of its submission after the date of accident alone, is not legally sustained.
Judgment dated 22.4.2025 of the Supreme Court of India in Special Leave Petition (Civil) No.10664 of 2019 of Nidhi Bhargava and others Vs. National Insurance Company Ltd and others
