Read S. 68 of IT Act with NI Act: Provisions relating to cheque in the Negotiable Instruments Act, 1881 need to be considered in context of S.68 of Income-tax Act, 1961 – a reading again and reconsideration of some judgments allowing invocation of S. 68 for receipts by cheque is desirable https://www.taxtmi.com/article/detailed?id=7839 When a payee receives an a/c payee cheque, presents it in due course and the drawee bank honours it, the cheque and the bank's payment serve as proof of source: the holder is a holder in due course and the payment is a payment in due course, so the sum credited in the payee's books is legitimately sourced by cheque realisation and should not be treated as an unexplained cash credit under the cash credit provision without reconsidering Negotiable Instruments Act presumptions. en-us Wed, 31 Jan 2018 07:34:26 +0530 Wed, 31 Jan 2018 07:34:26 +0530 TaxTMI RSS Generator Read S. 68 of IT Act with NI Act: Provisions relating to cheque in the Negotiable Instruments Act, 1881 need to be considered in context of S.68 of Income-tax Act, 1961 – a reading again and reconsideration of some judgments allowing invocation of S. 68 for receipts by cheque is desirable https://www.taxtmi.com/article/detailed?id=7839 When a payee receives an a/c payee cheque, presents it in due course and the drawee bank honours it, the cheque and the bank's payment serve as proof of source: the holder is a holder in due course and the payment is a payment in due course, so the sum credited in the payee's books is legitimately sourced by cheque realisation and should not be treated as an unexplained cash credit under the cash credit provision without reconsidering Negotiable Instruments Act presumptions. Articles Income Tax Wed, 31 Jan 2018 07:34:26 +0530 https://www.taxtmi.com/article/detailed?id=7839