Sunday, 23 August 2020

Whether Motor accident claim tribunal can treat depreciation costs on capital assets as income for grant of compensation?

 It was then contended by Mr. Jayanth Muth Raj that this Court must add to the annual income of the deceased, depreciation costs on capital assets to the amounts of Rs. 21,642, 74,685 and 7,701 as reflected in the tax return for the assessment year 1997-1998. We are unable to accede to this contention. Depreciation is the deduction allowed for the decline in the real value of tangible or intangible assets over its useful life. Its value varies over time and cannot amount to tangible income for the purposes of computing annual income in a claim before the MACT.

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 9196-97 of 2019
Decided On: 09.12.2019

 Malarvizhi  Vs.  United India Insurance Company Limited 

Hon'ble Judges/Coram:
Dr. D.Y. Chandrachud and Hrishikesh Roy, JJ.

Author: Dr. D.Y. Chandrachud, J.
Citation:(2020) 4 SCC 228, MANU/SC/1700/2019.
Read full judgment here: Click here
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