Respected Sir,
This is with respect to my father's MACT case. He was the sole bread earner and post accident had unfortunately had become mentally challenged.
I have two parts to my question.
Part A: Treatment of Depreciation while computing Income for Sole Proprietor:
My father was a sole proprietor. He recently passed away.
His income was nearly 4.5 Lakhs. He however claimed nearly 3 Lakhs as depreciation.
Thus, his Profit before Depreciation was 4.5 Lakhs
while Profit After Depreciation was 1.5 Lakhs.
Which amount would be taken as amount for compensation case. Please guide sir.
Per my understanding, depreciation is a non-cash expense and is similar to say standard deduction which is allowed for Tax computation.
Thus, Profit before depreciation should be taken into account.
Part B ) Is my Lawyer acting fine?
Its been over 2 years but we are yet to get any ourcome. My father recently passed away.
My father became mentally challenged post accident and after 2 years of sufferings recently passed away after a brain hemorrage.
He is also suggesting that amount of compensation would be very small amount.
My lawyer prima facie prefers for a settlement. He is suggesting Insurance Company may contest that my Father passed away after 2 years due to some other reason.
Medical reports clearly show that he passed post a brain hemmorage. He had suffered large Brain damage in accident.
Now after 2 years, Insurance company guy for the first time interacted with us and said we would offer an amount. This seems a ploy to offer a lower compensation.
Nearly 6 months back , case submitted to Lok Adalat but Insurance Company refused to go for it. I was not even informed about this. I got to know about this lok adalat thing on the day of date. My lawyer suggested as the case is on higher side, insurance company is not ready to take it up.
My point is how he died is immaterial now as in any which case, he was not in a position to earn. So all we are seeking is loss of income and reimbursement of expenses.
Sir please help me as I have no source of information. My lawyer, is bent on compromise. Now after he is no more and I have suffered 2 years of misery including a brain stroke due to tensions, why should i go for compromise.
Many Thanks in advance sir...
Regards,
Gaurav Ahuja on behalf of my CousinSister....
