Charitable trust registration requires a specified-violation notice; settled cash deposits and related-party payments did not justify cancellation or ...
External development charges trigger TDS under section 194C, while disputed administrative payments require factual verification and fresh adjudicatio...
Section 270AA penalty immunity requires identified statutory defaults and a hearing before rejection; reassessment disclosure may constitute under-rep...
Section 80JJAA employee-cost deduction allowed for deployed staff but barred against transfer-pricing income enhancement, with pricing issues remanded...
Transfer-pricing methodology protects commercially genuine associated-enterprise payments, while pre-2016 secondary adjustments and related notional i...
Negative liens over operating assets can constitute international transactions requiring arm's-length pricing reflecting restricted borrowing and expa...
Cross-examination rights in Customs Broker revocation inquiries require witness examination; procedural denial may be cured through fresh adjudication...
Dishonor of cheque due to account freeze falls within the purview of Section 138 of the Negotiable Instruments Act. The test is whether the account had insufficient funds or exceeded the arranged limit, regardless of the drawer's knowledge about the account freeze. If a cheque is issued from a frozen account with the intention to cheat, it attracts Section 138. In this case, on the cheque date, the account lacked sufficient funds, satisfying the first contingency u/s 138. Despite the statutory notice, the petitioner company disputed the liability and did not pay the cheque amount. The court dismissed the petition, ruling that a bank freezing the account can initiate a complaint for cheque dishonor due to account freeze, subject to considering the circumstances surrounding the issuance of the cheque to the complainant bank.
Dishonor of cheque due to account freeze falls within the purview of Section 138 of the Negotiable Instruments Act. The test is whether the account had insufficient funds or exceeded the arranged limit, regardless of the drawer's knowledge about the account freeze. If a cheque is issued from a frozen account with the intention to cheat, it attracts Section 138. In this case, on the cheque date, the account lacked sufficient funds, satisfying the first contingency u/s 138. Despite the statutory notice, the petitioner company disputed the liability and did not pay the cheque amount. The court dismissed the petition, ruling that a bank freezing the account can initiate a complaint for cheque dishonor due to account freeze, subject to considering the circumstances surrounding the issuance of the cheque to the complainant bank.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
