Can the court acquit the accused for an offense of cheque dishonor if they have examined an income tax officer to prove that the complainant has not declared the loan in their income tax return?

  It can thus be seen that this Court has held that once the execution of cheque is admitted, Section 139 of the N.I. Act mandates a presumption that the cheque was for the discharge of any debt or other liability. It has however been held that the presumption under Section 139 is a rebuttable presumption and the onus is on the accused to raise the probable defence. The standard of proof for rebutting the presumption is that of preponderance of probabilities. It has further been held that to rebut the presumption, it is open for the accused to rely on evidence led by him or the accused can also rely on the materials submitted by the complainant in order to raise a probable defence. It has been held that inference of preponderance of probabilities can be drawn not only from the materials brought on record by the parties but also by reference to the circumstances upon which they rely. {Para 13}

15. In the present case, the accused appellant had examined Mr. Sarsaiyyn, Income Tax Officer, Ward No.18, Circle (II) (5), who produced certified copies of the Income Tax Returns of the complainant for the financial year 199596, 199697, 199798 and 199899. The certified copies of the Income Tax Returns established that the complainant had not declared that he had lent Rs.3 lakh to the accused. It further established that the agricultural income also was not declared in the Income Tax Returns.

16. The learned Trial Court further found that from the income which was shown in the Income Tax Return, which was duly exhibited, it was clear that the complainant(s) did not have financial capacity to lend money as alleged.

IN THE SUPREME COURT OF INDIA 

CRIMINAL / CIVIL APPELLATE JURISDICTION 

 CRIMINAL APPEAL NO. 1978 OF 2013.

RAJARAM S/O SRIRAMULU NAIDU (SINCE DECEASED) THROUGH L.RS. Vs MARUTHACHALAM (SINCE DECEASED) THROUGH L.RS.

Coram: B.R. GAVAI; J., M.M. SUNDRESH; J.

Author: B.R. GAVAI, J.

Dated:  JANUARY 18, 2023.

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Supreme Court: Income Tax Returns And Audit Reports Are Reliable Evidence To Determine Income Of Deceased in motor accident claim petition

  In contrast, the High Court set aside the same on the ground

that the income earned was out of capital assets and cannot be said to

have been earned out of personal skills of the deceased. It

consequently went on to determine the income of the Deceased on a

notional basis as per his educational qualification. Unfortunately,

such an approach, in our opinion, is erroneous in view of the

decisions of this court in Amrit Bhanu Shali v National Insurance

Co. Ltd.10 and Kalpanaraj v Tamil Nadu State Transport Corpn.11

wherein this court has held that documents such as income tax

returns and audit reports are reliable evidence to determine the

income of the deceased. Hence, we are obliged to modify the

compensation, especially when neither any additional evidence has been produced to showcase that the income of the Deceased was contrary to the amount mentioned in the audit reports nor it is the stand taken by the Insurance Company that the said reports inflated the income. {Para 14}

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.7046 OF 2022

K. Ramya & Ors. Vs National Insurance Co. Ltd. & Anr.

Author: Surya Kant, J.

DATED: 30.09.2022

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Supreme Court: Motor accident claim tribunal must determine compensation based on the income tax return where available

The tax return indicates an annual income of Rs. 2,11,131 in the relevant assessment year. Mr. Jayanth Muth Raj, learned Senior Counsel appearing on behalf of the Appellant contended that other documents were marked which reflected the income of the deceased. We are in agreement with the High Court that the determination must proceed on the basis of the income tax return, where available. The income tax return is a statutory document on which reliance may be placed to determine the annual income of the deceased. To the benefit of the Appellants, the High Court has proceeded on the basis of the income tax return for the assessment year 1997-1998 and not 1999-2000 and 2000-2001 which reflected a reduction in the annual income of the deceased.

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.

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