https://www.taxtmi.com/caselaws?id=69122 An instrument written on hundi paper must be characterised by its substance, not its form. Where the document contained an unconditional promise to pay and was negotiable only by endorsement, it was a promissory note rather than a hundi. The section targeting bogus hundi loans and untraceable cash-style transactions therefore did not apply. Even on the alternative assumption that it was a hundi, the transaction was genuine, recorded in both parties' books, and traceable, so the absence of payment by account-payee cheque was only a venial breach and did not justify tax addition. en-us Mon, 29 Mar 1982 00:00:00 +0530 Tue, 05 Apr 2011 12:49:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69122 An instrument written on hundi paper must be characterised by its substance, not its form. Where the document contained an unconditional promise to pay and was negotiable only by endorsement, it was a promissory note rather than a hundi. The section targeting bogus hundi loans and untraceable cash-style transactions therefore did not apply. Even on the alternative assumption that it was a hundi, the transaction was genuine, recorded in both parties' books, and traceable, so the absence of payment by account-payee cheque was only a venial breach and did not justify tax addition. Case-Laws Income Tax Mon, 29 Mar 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69122