The amounts, therefore, which were required to be paid to the deceased by his employer by way of perks, should be included for computation of his monthly income as that would have been added to his monthly income by way of contribution to the family as contradistinguished to the ones which were for his benefit. We may, however, hasten to add that from the said amount of income, the statutory amount of tax payable thereupon must be deducted. {Para 19}
It has also been stated: ' "Income" signifies "what comes in" (per Selborne, C., Jones v. Ogle [(1861-73) All ER Rep 918]). "It is as large a word as can be used" to denote a person's receipts (per Jessel, M.R., Huggins, ex p., Re [51 LJ Ch 935]). Income is not confined to receipts from business only and means periodical receipts from one's work, lands, investments, etc. Secy. to the Board of Revenue, Income Tax v. Al. Ar. Rm. Arunachalam Chettiar & Bros. [ MANU/TN/0126/1920 : AIR 1921 Mad 427] Ref. Vulcan Insurance Co. Ltd. v. Corporation of Madras [AIR 1930 Mad 626 (2)].
21. If the dictionary meaning of the word 'income' is taken to its logical conclusion, it should include those benefits, either in terms of money or otherwise, which are taken into consideration for the purpose of payment of income tax or professional tax although some elements thereof may or may not be taxable or would have been otherwise taxable but for the exemption conferred thereupon under the statute.
To the same effect is the decision of this Court in Oriental Insurance Company Limited v. Ram Prasad Varma and Ors. [ MANU/SC/0030/2009 : 2009:INSC:24 : (2009) 2 SCC 712: (2009) 1 SCC (Cri) 853: (2009) 1 Scale 598].
7. We, therefore, are of the opinion that "dearness allowance" and "house rent allowance" payable to the deceased should have been included for determining the income of the deceased and consequently the amount of compensation.
9. Recently in a judgment dated 11th July, 2024 in National Insurance Company Ltd. v. Nalini and Ors. [Petition for Special Leave to Appeal (C) No. 4230/2019], this Court held that, allowances under the heads of transport allowance, house rent allowance, provident fund loan, provident fund and special allowance ought to be added while considering the basic salary of the victim/deceased to arrive at the dependency factor.
10. Therefore, components of house rent allowance, flexible benefit plan and company contribution to provident fund have to be included in the salary of the deceased while applying the component of rise in income by future prospects to determine the dependency factor. The Accident Claims Tribunal was justified in factoring these components into the salary of the deceased, before applying 50% rise by future prospects due to future prospects, while calculating the total compensation payable to the Appellant.
IN THE SUPREME COURT OF INDIA
Civil Appeal No. ... of 2024 .
Decided On: 23.07.2024
Meenakshi Vs. The Oriental Insurance Co. Ltd.
Hon'ble Judges/Coram:
Hima Kohli and Sandeep Mehta, JJ.
Citation: MANU/SC/0830/2024,2024 INSC 573.
Print Page