National Insurance Co. Ltd. v. Pranay Sethi

16 SCC 680Reported decision2017#672 most cited

What is National Insurance Co. Ltd. v. Pranay Sethi authority for?

The Supreme Court in Pranay Sethi laid down the principles for determining 'future prospects' to be added to the income of a deceased person for calculating compensation under the Motor Vehicles Act. It also clarified principles of judicial discipline, including the binding nature of coordinate bench decisions and how to resolve conflicting Supreme Court judgments.

148

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2010 to 2026.

Also referred to as

National Insurance Co. Ltd. v. Pranay Sethi · 16 SCC 680 · Motor Vehicles Act Section 166 · future prospects compensation · judicial precedent · binding coordinate benches · conflicting Supreme Court decisions · valuation of income compensation · Section 11UA · Section 56(2)(viib)

Sections most often in play

Section 11UASection 142(1)Section 143(2)Section 143(3)Section 166 of the Motor Vehicles ActSection 1988Section 56(2)(viib)

Judgments citing National Insurance Co. Ltd. v. Pranay Sethi

SATYAJIT SAHA AND 9 ORS vs. THE UNION OF INDIA AND 3 ORS

The appeal is allowed

ITA/1/2026HC Gauhati29 Jan 2026

Bench: HONOURABLE MR. JUSTICE MICHAEL ZOTHANKHUMA,HONOURABLE MR. JUSTICE KAUSHIK GOSWAMI

Section 19(1)(b)Section 24Section 49

…to which decision of the conflicting 3 Judges Bench is to be followed, we are bound to follow the above interpretation given by the Hon’ble Supreme Court. Further, in the case of National Insurance Company Limited vs. Pranay Sethi & Others, reported in (2017) 16 SCC 680, the Hon’ble Supreme Court has held that when there are conflicting decisions of equal Benches of the Supreme Court, the earlier decision would have to be followed by the High Court. 26. In view of the reasons stated above, the following Questions of Law are answered as follows : 1. Whether the Learned Tribunal acted illegally in allowin…

HOLIDAY TRIANGLE TRAVEL PRIVATE LIMITED,GURGAON vs. INCOME TAX OFFICER, JAIPUR

In the result, appeal of the assessee is allowed

ITA 67/JPR/2024[2014-15]Status: DisposedITAT Jaipur20 Jan 2025AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

For Appellant: Shri Dilip Shivpuri, Advocate &For Respondent: Shri Gautam Singh Choudhary, JCIT
Section 142(1)Section 143(2)Section 250Section 56(2)(viib)

…enches. It is now a settled principle of law that the decisions rendered by a coordinate Bench is binding on the subsequent Benches of equal or lesser strength. The aforesaid view is reinforced in the National Insurance Company Limited v. Pranay Sethi, (2017) 16 SCC 680.” Therefore in view of above judgment of the Hon`ble SC we are restricting ourselves to only two judgments as cited above and are not discussing other case laws relied by both the sides. Therefore, in the facts and circumstances of the case discussed above and considering the decisions of the Coordinate Bench of the Tribunal, Jaipur as referred h…

COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. M/S JYOTI VIDYAPEETH TRUST

The appeals stand disposed of with the above

ITA/1/2019HC Rajasthan14 Nov 2024

Bench: AVNEESH JHINGAN,UMA SHANKER VYAS

…MAC.APP. 300/2016 and MAC.APP. 01/2019 & MAC.APP. 07/2019 Page 4 of 17 6. The only claim made in the cross appeal relates to grant of 40% future prospects in line with principles enunciated in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, considering that Smt. Meenu Verma and Smt. Madhu Verma were 34 and 28 years of age respectively. 7. Mr. Shadab Khan draws attention to the site plan to contend that there was no reason why the deceased should cross over the other side of the road at 08:00 P.M. in the night, when naturally the bus driver could not have spotted them to tak…

MANISH GOYAL S/O SHRI VISHNU DUTT GOYAL vs. THE DEPUTY COMMISSIONER OF INCOME TAX

In the result, both the appeals are allowed in part

ITA/39/2020HC Rajasthan31 Jul 2024

Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR

Section 166

…ars of age on the date of accident, there shall be addition of 40 % towards future prospects in the assessed income of deceased as held by Hon’ble -13- Supreme Court in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. reported in (2017) 16 SCC 680. There shall be deduction of 1/3 towards personal and living expenses and the application of multiplier would be 17. Claimant would also be entitled to get Rs.40,000/- towards ‘loss of spousal consortium’, Rs.15,000/-each towards ‘loss of estate’ and ‘funeral expenses’ and Rs.29,139/- towards ‘medical expenses’. 26. For the foregoi…

THE PR. COMMISSIONER OF INCOME TAX -3 vs. DIVINE DEVELOPWELL PVT. LTD.

The Appeals stand disposed of along with the pending Application(s),

ITA/110/2018HC Delhi02 May 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

Section 17Section 173

…ranted to the family members, which was liable to be deducted while calculating loss of income; (iv) that the compensation under the non-pecuniary heads needs to be revised in the light of judgment of National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680; and (v) that the interest granted @ 9% per annum is on the higher side. 3. The cross Appeal MAC.APP. 110/2018 under Section 173 of the Motor Vehicle Act, 1988 has also been filed by the Claimants who have sought enhancement of the compensation on the ground that various allowances like Washing, Transport, etc. forms part of the salary an…

MAHESWAR PANDA vs. I.T.O., WARD-2(1)

ITA/48/2023HC Orissa15 Apr 2024

Bench: DR. JUSTICE B.R.SARANGI,MR. JUSTICE GOURISHANKAR SATAPATHY

Section 166

…educed by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years. 27. Hon’ble Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680] has clarified the law under Sections 166, 163-A and 168 of the Motor Vehicles Act, 1988, on the following aspects:- (A) Deduction of personal and living expenses to determine multiplicand; (B) Selection of multiplier depending on age of deceased; (C) Age of deceased on basis for applying multiplier; (D) Reasonable figures on conventional heads…

Principal Commissioner of Income Tax-6 vs. M/s. Chillara Kalyan

The appeals are disposed of accordingly along with

ITTA/351/2019HC Telangana01 Nov 2023

Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY

Section 173Section 2(9)

…d rather, minimum wages should have been assessed @ 5760 UK Pounds. The claimants seek a total compensation of Rs. 1,88,81,550/- including reimbursement towards funeral expenses, about which evidence was 7 (2017) 16 SCC 680 Digitally Signed By:PRAMOD KUMAR VATS Signing Date:02.04.2024 21:07:20 Signature Not Verified MAC.APPL. 265/2019 & 351/2019 Page 9 of 26 led to the effect that 1165 UK Pounds were spent, which is equivalent to Rs. 90,000/- and it is also pointed out that interest…

PR. COMMISSIONER OF INCOME TAX -4, NEW DELHI vs. M/S INDUS TOWER LTD

The appeal is disposed of

ITA/89/2020HC Delhi31 Oct 2023

Bench: The Mact. The Mact Awarded Compensation As Stated Above. 4. There Are Only Two Counts On Which The Appellant/Lrs Of The Deceased This Is A Digitally Signed Order. The Authenticity Of The Order Can Be Re-Verified From Delhi High Court Order Portal By Scanning The Qr Code Shown Above. The Order Is Downloaded From The Dhc Server On 07/02/2026 At 12:50:19

…$~17 * IN THE HIGH COURT OF DELHI AT NEW DELHI + MAC.APP. 89/2020 HEM KUMARI DEVI & ORS .....Appellant Through: Mr. Umesh Kumar, Ms. Sakshi Mishra and Mr. Manoj Goel, Advs. versus INDRA PAL SINGH & ORS (UNITED INDIA INSURANCE CO LTD) .....Respondent Through: Ms. Mahua Kalra, Adv. for R-3. CORAM: HON'BLE MR. JUSTICE ANISH DAYAL O R D E R % 03.02.2026 1. This appeal has been filed assailing the award dated 06th August 2018 passed by the MACT, Patiala House Court in MACT No.124/2015, whereby the Tribunal awarded a compensation of Rs.19,36,000/- along with interest @ 9% per annum from…

MS RATAN MANDIR vs. DEPUTY COMMISSIONER OF INCOME TAX

The Appeals stand disposed of along with the pending Application(s),

ITA/110/2018HC Rajasthan04 Aug 2023

Bench: MANINDRA MOHAN SHRIVASTAVA,PRAVEER BHATNAGAR

Section 17Section 173

…ranted to the family members, which was liable to be deducted while calculating loss of income; (iv) that the compensation under the non-pecuniary heads needs to be revised in the light of judgment of National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680; and (v) that the interest granted @ 9% per annum is on the higher side. 3. The cross Appeal MAC.APP. 110/2018 under Section 173 of the Motor Vehicle Act, 1988 has also been filed by the Claimants who have sought enhancement of the compensation on the ground that various allowances like Washing, Transport, etc. forms part of the salary an…

PR. COMMISSIONER OF INCOME TAX-7, DELHI vs. MEERA GUPTA

ITA/406/2023HC Delhi27 Jul 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…of Ladakh v Jammu & Kashmir National Conference23, and which holds that the earlier judgement would have precedence. 35. The interlocutory reliefs sought by Indiabulls have, therefore, to be examined in the light of the aforestated law. 22 (2017) 16 SCC 680 23 2023 SCC OnLine SC 1140 Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date:24.12.2024 16:01:54 Signature Not Verified Digitally Signed By:AJIT KUMAR Signing Date:24.12.2024 16:03:54 Signature Not Verified OMP (I) (C…

THE PR. COMMISSIONER OF INCOME TAX -3 vs. DECENT FINANCIALS SERVICES PVT. LTD.

The appeals stand disposed of with the above

ITA/7/2019HC Delhi24 Nov 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

…MAC.APP. 300/2016 and MAC.APP. 01/2019 & MAC.APP. 07/2019 Page 4 of 17 6. The only claim made in the cross appeal relates to grant of 40% future prospects in line with principles enunciated in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, considering that Smt. Meenu Verma and Smt. Madhu Verma were 34 and 28 years of age respectively. 7. Mr. Shadab Khan draws attention to the site plan to contend that there was no reason why the deceased should cross over the other side of the road at 08:00 P.M. in the night, when naturally the bus driver could not have spotted them to tak…

PRINCIPAL COMMISSIONER OF INCOME TAX 9 KOLKATA vs. MRS PREMLATA TEKRIWAL

ITAT/28/2022HC Calcutta22 Nov 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 166

…mages under the conventional heads should be Rs. 70,000/- instead of Rs. 1,10,000/- granted by the learned Tribunal in view of observation of the Hon’ble Supreme Court in National Insurance Company Limited versus Pranay Sethi and Others reported in (2017) 16 SCC 680. In light of his aforesaid submissions, he prayed for setting aside and/or modification of the impugned judgment and award of the learned Tribunal. 10. In reply to the contentions raised on behalf of the appellant-insurance company, Mr. Abu Abbas Uddin, learned advocate for the respondent nos. 1 and 2 (claimants) submitted that PW1, widow of…

PR. COMMISSIONER OF INCOME TAX (CENTRAL)-2 vs. M/S JAY AUTO COMPONENTS LTD.

ITA/368/2022HC Delhi26 Sept 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

…d 40 years and 9 months as on the date of the accident, future prospects should be determined for the age bracket of up to 40 years as prescribed in the judgment of the Supreme Court in National Insurance Company Limited v. Pranay Sethi and Others, (2017) 16 SCC 680. He submits that, therefore, future prospects of 50% should have been granted. In support of his submission, he places reliance on the judgment of the Supreme Court in M.H. Uma Maheshwari & Ors. v. United India Insurance Company Limited & Anr., (2020) 6 SCC 400. (c) the learned counsel for the claimants further submits that the learned Trib…

COMMISSIONER OF INCOME TAX, KOL-XVIII, KOLKATA vs. M/S. RAKSHIT JEWELLERY PALACE

ITA/50/2014HC Calcutta22 Sept 2022

Bench: The Motor Accident Tribunal.

For Appellant: Mr.Parimal Kumar Pahari
Section 163ASection 166

…No professional tax was paid by the deceased. Thus, the monthly income is taken as Rs. 32, 268/- per month and he had a permanent job, being 40 years of age. Thus, following the guidelines provided in (National Insurance Co. Ltd. Vs. Pranay Sethi, (2017) 16 SCC 680, decided on 31st October, 2017 (Para 59.3)), the claimants are entitled to an amount equivalent to 30% of the annual income of the deceased towards future prospects. 6 10. The claimants are also entitled to general damages of Rs. 70,000/- under the conventional heads of loss of estate, loss of the consortium and funeral expenses (Nati…

PRINCIPAL COMMISSIONER OF INCOME TAX 5, KOLKATA vs. SHYAM KUMAR BAID

ITAT/10/2022HC Calcutta29 Aug 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 14Section 166

…s annual income towards future prospect. 20. Coming to the last issue relating to grant of interest on compensation amount, it is found that the learned Tribunal has granted interest @ 8% 6 (2017) 16 SCC 680 20 per annum on the compensation amount. Mr. Paul, learned advocate for appellant-insurance company argued that the interest on the compensation amount should be scaled down bearing in mind the prevalent banking rate of interest. In view of the aforesaid submissions and also considering the prevalent banking rate of interest, the…

PR. COMMISSIONER OF INCOME TAX-2 vs. M/S. HYDERABAD MENZIES AIR CARGO PVT LTD

The appeals stand disposed of with the above

ITTA/1/2019HC Telangana11 Jul 2022

Bench: SUREPALLI NANDA,UJJAL BHUYAN

…MAC.APP. 300/2016 and MAC.APP. 01/2019 & MAC.APP. 07/2019 Page 4 of 17 6. The only claim made in the cross appeal relates to grant of 40% future prospects in line with principles enunciated in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, considering that Smt. Meenu Verma and Smt. Madhu Verma were 34 and 28 years of age respectively. 7. Mr. Shadab Khan draws attention to the site plan to contend that there was no reason why the deceased should cross over the other side of the road at 08:00 P.M. in the night, when naturally the bus driver could not have spotted them to tak…

M/S.KINFRA EXPORT PROMOTION INDUSTRIAL PARKS LTD., vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,

In the result, the appeal is allowed

ITA/62/2018HC Kerala07 Apr 2022

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE BASANT BALAJI

…ould be 2,69,352-8935 = 2,60,417/-. Since the deceased was aged 25 years 11 months and 28 days, the multiplier to be adopted is 18, since he has not completed 26 years. Going by the decision reported in National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680] future prospectus at the rate of 50% is to be added since he is below the age of 40 years and has a permanent job. The deceased was unmarried, so half of the income has to be deducted towards personal expenses. So, the annual income of the deceased would be Rs.2,60,417+1,30,208.5 (2,60,417x50/100) = Rs.3,90,625.5. Deducting half of this…

COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-2 vs. GRACEMAC CORPORATION

ITA/34/2022HC Delhi07 Mar 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE SUDHIR KUMAR JAIN

…llage, Ring Road, from Aashram to Moolchand, New Delhi with due care and precaution to go Chankyapur, New Delhi. At the same time suddenly a vehicle bearing 1 (2011) 1 SCC 343 [hereinafter, “Raj Kumar”]. 2 (2017) 16 SCC 680 [hereinafter, “Pranay Sethi”]. Signed By:DAMINI YADAV Signing Date:15.12.2025 15:12:53 Signature Not Verified MAC.APP. 41/2021 and MAC.APP. 34/2022 Page 5 of 15 registration No. DL1LP-4567 (Water Tanker, Tata Goods Career) which was being driven in reverse direction with rash and neg…

COMMISSIONER OF INCOME TAX, CENTRAL-III, KOLKATA vs. M/S GURU NANAK EDUCATIONAL TRUST

The appeal is allowed and the cross-objection is

ITA/43/2013HC Calcutta07 Jan 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE ANANDA KUMAR MUKHERJEE

Section 166

…urnima filling station having lubricant licence No. 27/Lub. Such being the factual matrix, he was a self-employed person. The Hon’ble Apex Court in the decision in the case of National Insurance Company Limited –Vs- Pranay Sethi and Ors reported in (2017) 16 SCC 680 has held at paragraph 59.4 that in the case the deceased was self-employed or on a fix salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. In view of this decision, 40% of the income of the deceased should be added towards his future prospects. Since the deceased had th…

RADHESHYAM MAHESHWARI vs. THE COMMISSIONER OF INCOME TAX-I

ITA/156/2012HC Madhya Pradesh21 Jun 2021
Section 166

…reduced by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years. 20. Hon’ble Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680] has clarified the law under GAURAV ARORA 2026.04.10 19:07 I attest to the accuracy and integrity of this document FAO-5361 and 3466 of 2012 11 Sections 166, 163-A and 168 of the Motor Vehicles Act, 1988, on the following aspects:- (A) Deduction of personal and living expenses to determine multiplicand; (B) Selection of multiplier depend…

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