Bombay HC rules housing loan interest cannot reduce motor accident compensation; family gets ₹17.58 lakh more

Bombay High Court ruled that housing loan interest claimed under the Income-tax Act cannot reduce compensation payable under the Motor Vehicles Act.

The court enhanced compensation to the family of a deceased medical practitioner by ₹17.58 lakh, reversing a Motor Accident Claims Tribunal order.

Justice Jitendra Jain held that the set-off mechanism under Section 71 of the Income-tax Act is for computing tax liability and cannot be applied to determine 'just compensation' under the MV Act.

The court clarified that income from assets like house property may continue after the earning member's death and cannot be used to reduce compensation.