Motor Vehicles Act, 1988 – Claim for compensation – Perquisites/allowances in the nature of house rent, flexible benefit plan and company contribution to provident fund cannot be excluded from the basic salary for the purpose of applying future prospects – High Court erred in excluding them – High Court justified in deducting Income Tax from the gross salary of the deceased for calculating his gross income – Appeal partly allowed:
Held: Claim for compensation by deceased’s mother – High Court vide impugned judgment reduced compensation amount awarded by Accident Claims Tribunal – It excluded the components of house rent allowance, flexible benefit plan and contribution to provident fund etc. from the gross income for the purpose of applying future prospects – It also deducted income tax from the gross salary – Appeal partly allowed – High Court erred in omitting to add components of house rent allowance, flexible benefit plan and company contribution to provident fund to the basic salary of the deceased – However, High Court justified in deducting income tax from the gross salary while calculating the gross income – Compensation amount re-assessed. [Paras 12-15]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Aishani Narain, Hony. Associate Editor (Verified by: Shibani Ghosh, Adv.). Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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