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Criminal Procedure Code, 1973 — Sections 209, 244 — Commitment of case exclusively triable by Court of Session — Whether Magistrate is required to record prosecution evidence under Section 244 CrPC before committing such a case, where the complaint is one instituted otherwise than on a police report — Held, no — Section 244 CrPC, which mandates the Magistrate to hear the prosecution and take evidence, occurs in Chapter XIX (Part B — “Cases instituted otherwise than on a police report”) and governs warrant-case trials before a Magistrate; it has no application where the offence (here, under Section 302 IPC) is exclusively triable by the Court of Session, which is governed instead by Section 209 CrPC — Under the scheme of the 1973 Code (unlike the erstwhile 1898 Code, which mandated a full committal inquiry with recording of evidence under Section 207-A), the Magistrate’s role at the pre-commitment stage is confined to ascertaining whether the offence is exclusively triable by the Sessions Court, and no evidence need be taken or evaluated by the Magistrate at that stage — Requiring witnesses to depose twice, once before the Magistrate and again before the Sessions Court, would serve no purpose and is not the mandate of law — High Court’s contrary view, requiring compliance with Section 244 CrPC even in a Sessions-triable case, proceeds on an erroneous reading of law and is unsustainable. Motor Vehicles Act, 1988 — Sections166, 168 — Compensation — Assessment of annual income of a self-employed deceased (wholesale grocery business) — Two ITRs filed after the death of the deceased excluded by the High Court altogether from the assessment of income — Held, following the principles in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], ITRs filed post-death call for closer scrutiny with reference to surrounding financial statements, since income may be inflated in such returns, but such returns are not to be excluded outright merely for being filed post-death — In the absence of the benefit of such surrounding financial statements on record, and it being inexpedient at this stage to remand the matter, annual income fixed with reference to the nature of the deceased’s wholesale grocery business at Rs.3,25,000 — Compensation recomputed applying 40% addition for future prospects (age 28 years), 1/4th deduction for personal expenses, and a multiplier of 17, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.60,79,550 (as against Rs.15,36,560 awarded by the Tribunal and Rs.38,40,850 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed. Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of a self-employed deceased (Insurance Agent) from Income Tax Returns — High Court had averaged the last four ITRs on record — Held, erroneous — Following the principles laid down in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], for a self-employed person the average of up to the previous three years’ ITRs, not four, is the appropriate reference point — A performance-linked spike in the income of an Insurance Agent in a particular year does not justify reaching back to an additional, earlier ITR to dilute that spike — On the facts, taking the average of the income for AY 2015-16 (Rs.4,03,180), AY 2016-17 (Rs.9,59,665) and AY 2017-18 (Rs.7,00,559), annual income assessed at Rs.6,87,802 — Compensation recomputed applying 25% addition for future prospects (age 49 years), 1/4th deduction for personal expenses, and a multiplier of 13, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.87,09,282 (as against Rs.49,77,000 awarded by the Tribunal and Rs.76,09,500 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed. Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported. Civil Procedure Code, 1908 (CPC) — Order 23 Rule 3 — Compromise decree — Requirement of signature/voluntary authorisation — Compromise petition in a partition suit signed on behalf of defendant not personally but through counsel, absent express authorisation or exigent circumstance — Held, invalid — A compromise, to be lawful under Order XXIII Rule 3, must be in writing and signed by the parties themselves; a counsel or authorised representative may sign on a party’s behalf only where there is express authorisation in the vakalatnama or an exigency of circumstance justifying such action — In the absence of either, and there being nothing on record to show that defendant no.5 had authorised his counsel to compromise away his substantial rights in the suit property, the mandatory requirement of a voluntary, party-signed compromise under Order XXIII Rule 3 was not satisfied — The resultant compromise decree was accordingly contrary to law and rightly set aside.
Cr P C

Criminal Procedure Code, 1973 — Sections 209, 244 — Commitment of case exclusively triable by Court of Session — Whether Magistrate is required to record prosecution evidence under Section 244 CrPC before committing such a case, where the complaint is one instituted otherwise than on a police report — Held, no — Section 244 CrPC, which mandates the Magistrate to hear the prosecution and take evidence, occurs in Chapter XIX (Part B — “Cases instituted otherwise than on a police report”) and governs warrant-case trials before a Magistrate; it has no application where the offence (here, under Section 302 IPC) is exclusively triable by the Court of Session, which is governed instead by Section 209 CrPC — Under the scheme of the 1973 Code (unlike the erstwhile 1898 Code, which mandated a full committal inquiry with recording of evidence under Section 207-A), the Magistrate’s role at the pre-commitment stage is confined to ascertaining whether the offence is exclusively triable by the Sessions Court, and no evidence need be taken or evaluated by the Magistrate at that stage — Requiring witnesses to depose twice, once before the Magistrate and again before the Sessions Court, would serve no purpose and is not the mandate of law — High Court’s contrary view, requiring compliance with Section 244 CrPC even in a Sessions-triable case, proceeds on an erroneous reading of law and is unsustainable.

Jul 5, 2026 sclaw
Accident

Motor Vehicles Act, 1988 — Sections166, 168 — Compensation — Assessment of annual income of a self-employed deceased (wholesale grocery business) — Two ITRs filed after the death of the deceased excluded by the High Court altogether from the assessment of income — Held, following the principles in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], ITRs filed post-death call for closer scrutiny with reference to surrounding financial statements, since income may be inflated in such returns, but such returns are not to be excluded outright merely for being filed post-death — In the absence of the benefit of such surrounding financial statements on record, and it being inexpedient at this stage to remand the matter, annual income fixed with reference to the nature of the deceased’s wholesale grocery business at Rs.3,25,000 — Compensation recomputed applying 40% addition for future prospects (age 28 years), 1/4th deduction for personal expenses, and a multiplier of 17, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.60,79,550 (as against Rs.15,36,560 awarded by the Tribunal and Rs.38,40,850 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.

Jul 5, 2026 sclaw
Criminal Procedure Code, 1973 — Sections 209, 244 — Commitment of case exclusively triable by Court of Session — Whether Magistrate is required to record prosecution evidence under Section 244 CrPC before committing such a case, where the complaint is one instituted otherwise than on a police report — Held, no — Section 244 CrPC, which mandates the Magistrate to hear the prosecution and take evidence, occurs in Chapter XIX (Part B — “Cases instituted otherwise than on a police report”) and governs warrant-case trials before a Magistrate; it has no application where the offence (here, under Section 302 IPC) is exclusively triable by the Court of Session, which is governed instead by Section 209 CrPC — Under the scheme of the 1973 Code (unlike the erstwhile 1898 Code, which mandated a full committal inquiry with recording of evidence under Section 207-A), the Magistrate’s role at the pre-commitment stage is confined to ascertaining whether the offence is exclusively triable by the Sessions Court, and no evidence need be taken or evaluated by the Magistrate at that stage — Requiring witnesses to depose twice, once before the Magistrate and again before the Sessions Court, would serve no purpose and is not the mandate of law — High Court’s contrary view, requiring compliance with Section 244 CrPC even in a Sessions-triable case, proceeds on an erroneous reading of law and is unsustainable.
Cr P C
Criminal Procedure Code, 1973 — Sections 209, 244 — Commitment of case exclusively triable by Court of Session — Whether Magistrate is required to record prosecution evidence under Section 244 CrPC before committing such a case, where the complaint is one instituted otherwise than on a police report — Held, no — Section 244 CrPC, which mandates the Magistrate to hear the prosecution and take evidence, occurs in Chapter XIX (Part B — “Cases instituted otherwise than on a police report”) and governs warrant-case trials before a Magistrate; it has no application where the offence (here, under Section 302 IPC) is exclusively triable by the Court of Session, which is governed instead by Section 209 CrPC — Under the scheme of the 1973 Code (unlike the erstwhile 1898 Code, which mandated a full committal inquiry with recording of evidence under Section 207-A), the Magistrate’s role at the pre-commitment stage is confined to ascertaining whether the offence is exclusively triable by the Sessions Court, and no evidence need be taken or evaluated by the Magistrate at that stage — Requiring witnesses to depose twice, once before the Magistrate and again before the Sessions Court, would serve no purpose and is not the mandate of law — High Court’s contrary view, requiring compliance with Section 244 CrPC even in a Sessions-triable case, proceeds on an erroneous reading of law and is unsustainable.
Motor Vehicles Act, 1988 — Sections166, 168 — Compensation — Assessment of annual income of a self-employed deceased (wholesale grocery business) — Two ITRs filed after the death of the deceased excluded by the High Court altogether from the assessment of income — Held, following the principles in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], ITRs filed post-death call for closer scrutiny with reference to surrounding financial statements, since income may be inflated in such returns, but such returns are not to be excluded outright merely for being filed post-death — In the absence of the benefit of such surrounding financial statements on record, and it being inexpedient at this stage to remand the matter, annual income fixed with reference to the nature of the deceased’s wholesale grocery business at Rs.3,25,000 — Compensation recomputed applying 40% addition for future prospects (age 28 years), 1/4th deduction for personal expenses, and a multiplier of 17, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.60,79,550 (as against Rs.15,36,560 awarded by the Tribunal and Rs.38,40,850 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.
Accident
Motor Vehicles Act, 1988 — Sections166, 168 — Compensation — Assessment of annual income of a self-employed deceased (wholesale grocery business) — Two ITRs filed after the death of the deceased excluded by the High Court altogether from the assessment of income — Held, following the principles in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], ITRs filed post-death call for closer scrutiny with reference to surrounding financial statements, since income may be inflated in such returns, but such returns are not to be excluded outright merely for being filed post-death — In the absence of the benefit of such surrounding financial statements on record, and it being inexpedient at this stage to remand the matter, annual income fixed with reference to the nature of the deceased’s wholesale grocery business at Rs.3,25,000 — Compensation recomputed applying 40% addition for future prospects (age 28 years), 1/4th deduction for personal expenses, and a multiplier of 17, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.60,79,550 (as against Rs.15,36,560 awarded by the Tribunal and Rs.38,40,850 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.
Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of a self-employed deceased (Insurance Agent) from Income Tax Returns — High Court had averaged the last four ITRs on record — Held, erroneous — Following the principles laid down in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], for a self-employed person the average of up to the previous three years’ ITRs, not four, is the appropriate reference point — A performance-linked spike in the income of an Insurance Agent in a particular year does not justify reaching back to an additional, earlier ITR to dilute that spike — On the facts, taking the average of the income for AY 2015-16 (Rs.4,03,180), AY 2016-17 (Rs.9,59,665) and AY 2017-18 (Rs.7,00,559), annual income assessed at Rs.6,87,802 — Compensation recomputed applying 25% addition for future prospects (age 49 years), 1/4th deduction for personal expenses, and a multiplier of 13, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.87,09,282 (as against Rs.49,77,000 awarded by the Tribunal and Rs.76,09,500 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.
Accident
Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of a self-employed deceased (Insurance Agent) from Income Tax Returns — High Court had averaged the last four ITRs on record — Held, erroneous — Following the principles laid down in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], for a self-employed person the average of up to the previous three years’ ITRs, not four, is the appropriate reference point — A performance-linked spike in the income of an Insurance Agent in a particular year does not justify reaching back to an additional, earlier ITR to dilute that spike — On the facts, taking the average of the income for AY 2015-16 (Rs.4,03,180), AY 2016-17 (Rs.9,59,665) and AY 2017-18 (Rs.7,00,559), annual income assessed at Rs.6,87,802 — Compensation recomputed applying 25% addition for future prospects (age 49 years), 1/4th deduction for personal expenses, and a multiplier of 13, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.87,09,282 (as against Rs.49,77,000 awarded by the Tribunal and Rs.76,09,500 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.
Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.
Accident
Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.
Corporate

Theft of electricity by a company–Prosecution of directors of company– It was obligatory on the part of the complainant not only to make requisite averments in the complaint petition but also to prove that any of the Directors who had been prosecuted for alleged commission of the aforementioned offence was incharge of and was otherwise responsible for the conduct or the affairs of the Company– Conviction set aside

Jan 26, 2019 sclaw

2009(1) LAW HERALD (SC) 314 IN THE SUPREME COURT OF INDIA Before  The Hon’ble Mr. Justice  S.B. Sinha The Hon’ble Mr. Justice  Cyriac Joseph Criminal Appeal No. 1962 of 2008…

C P C

Decree against dead person–Death of defendant pending appeal–An application made for substitution of legal representatives, but no order passed by Court through inadvertence–Decree drawn against dead defendant–Decree executable against legal representatives–It was essentially a technical error–Held, act of court should do no harm to a litigant– Civil Procedure Code, 1908, Section 47–Civil Procedure Code, 1908, Order 23 Rule 2.      

Jan 26, 2019 sclaw

2009(1) LAW HERALD (SC) 309 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Altamas Kabir The Hon’ble Mr. Justice Markandey Katju Civil Appeal Nos. 6850-6851 of 2008…

Bail Declined

Criminal Law–Bail–Grant of–Though detailed examination of the evidence and elaborate documentation of the merits of the case is to be avoided by the Court while passing orders on bail applications, yet a court dealing with the bail application should be satisfied as to whether there is a prima facie case, but exhaustive exploration of the merits of the case is not necessary

Jan 26, 2019 sclaw

2009(1) LAW HERALD (SC) 284 IN THE SUPREME COURT OF INDIA Before  The Hon’ble Mr. Justice  Arijit Pasayat The Hon’ble Mr. Justice  Mukundakam Sharma Criminal Appeal No. 1893 of 2008…

Cr P C

During pendency of appeal bail allowed in the year 2006–The incident is 30 years old and after being released in 2006 on bail, it will not be proper to send the accused back to jail, more particularly, because nothing has been stated against him regarding his indulgence in any criminal activity–Sentence reduced to already undergone–Penal Code, 1860, Section 326. 

Jan 26, 2019 sclaw

2009(1) LAW HERALD (SC) 282 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Tarun Chatterjee The Hon’ble Mr. Justice  V.S.Sirpurkar Criminal Appeal No.1833 of 2008 (Arising out…

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Cr P C

Criminal Procedure Code, 1973 — Sections 209, 244 — Commitment of case exclusively triable by Court of Session — Whether Magistrate is required to record prosecution evidence under Section 244 CrPC before committing such a case, where the complaint is one instituted otherwise than on a police report — Held, no — Section 244 CrPC, which mandates the Magistrate to hear the prosecution and take evidence, occurs in Chapter XIX (Part B — “Cases instituted otherwise than on a police report”) and governs warrant-case trials before a Magistrate; it has no application where the offence (here, under Section 302 IPC) is exclusively triable by the Court of Session, which is governed instead by Section 209 CrPC — Under the scheme of the 1973 Code (unlike the erstwhile 1898 Code, which mandated a full committal inquiry with recording of evidence under Section 207-A), the Magistrate’s role at the pre-commitment stage is confined to ascertaining whether the offence is exclusively triable by the Sessions Court, and no evidence need be taken or evaluated by the Magistrate at that stage — Requiring witnesses to depose twice, once before the Magistrate and again before the Sessions Court, would serve no purpose and is not the mandate of law — High Court’s contrary view, requiring compliance with Section 244 CrPC even in a Sessions-triable case, proceeds on an erroneous reading of law and is unsustainable.

Jul 5, 2026 sclaw
Accident

Motor Vehicles Act, 1988 — Sections166, 168 — Compensation — Assessment of annual income of a self-employed deceased (wholesale grocery business) — Two ITRs filed after the death of the deceased excluded by the High Court altogether from the assessment of income — Held, following the principles in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], ITRs filed post-death call for closer scrutiny with reference to surrounding financial statements, since income may be inflated in such returns, but such returns are not to be excluded outright merely for being filed post-death — In the absence of the benefit of such surrounding financial statements on record, and it being inexpedient at this stage to remand the matter, annual income fixed with reference to the nature of the deceased’s wholesale grocery business at Rs.3,25,000 — Compensation recomputed applying 40% addition for future prospects (age 28 years), 1/4th deduction for personal expenses, and a multiplier of 17, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.60,79,550 (as against Rs.15,36,560 awarded by the Tribunal and Rs.38,40,850 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.

Jul 5, 2026 sclaw
Accident

Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of a self-employed deceased (Insurance Agent) from Income Tax Returns — High Court had averaged the last four ITRs on record — Held, erroneous — Following the principles laid down in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], for a self-employed person the average of up to the previous three years’ ITRs, not four, is the appropriate reference point — A performance-linked spike in the income of an Insurance Agent in a particular year does not justify reaching back to an additional, earlier ITR to dilute that spike — On the facts, taking the average of the income for AY 2015-16 (Rs.4,03,180), AY 2016-17 (Rs.9,59,665) and AY 2017-18 (Rs.7,00,559), annual income assessed at Rs.6,87,802 — Compensation recomputed applying 25% addition for future prospects (age 49 years), 1/4th deduction for personal expenses, and a multiplier of 13, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.87,09,282 (as against Rs.49,77,000 awarded by the Tribunal and Rs.76,09,500 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.

Jul 5, 2026 sclaw
Accident

Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.

Jul 5, 2026 sclaw