KRISHNA BHAGAT Vs. TEJVIR SINGH

JUDGEMENT

(1.) THE Appellants seek enhancement of compensation being legal representatives of the deceased Satya Bhagat who died in an accident which took place on 06.08.1986. The deceased was working as an Assistant Engineer with Indian Airlines and was aged about 55 years on the date of the accident. He was getting a salary of Rs. 7306/ - per month. The Tribunal took the deceased's salary to be Rs. 5300/ -, deducted Rs. 1300/ - towards income tax and calculated the loss of dependency, on applying the multiplier of 11. The overall compensation of Rs. 5,43,000/ - was awarded.

(2.) IT is urged by the learned counsel for the Appellants that the deceased's income was proved as Rs. 7306/ - by the document Ex. PW -3/2 as also by PW -3's testimony. It is urged that the income tax should not have been deducted while computing the dependency and interest should have been awarded @ 12% per annum.

(3.) DAMYANTIBEN and Ors. v. Firozkhan Abdul Rasidkhan Pathan & Anr., III (2009) ACC 508 (DB) relied upon by the learned counsel for the Appellants that the income tax should not be deducted is not good law in view of the Sarla Verma (supra). The liability of income tax on the income of Rs. 7306/ - x 12 = 87672/ - was Rs. 24,290/ - in the assessment year 1987 -88. (Relevant to the date of the accident); deducting one -fourth towards personal expenses and applying the multiplier of 11, the total dependency works out as Rs. 5,22,901.5P (7306 x 12 = 87,672/ - - 24,290 (tax)= 63,382/ - - 15,845.5P (one -fourth) = 47536.5 x 11 = 522,901.5 rounded to Rs. 5,22,902/ -.