https://www.taxtmi.com/caselaws?id=295082 A cheque issued against an unaccounted cash loan, not disclosed in income tax returns, was held not to be issued in discharge of a legally enforceable debt under Section 138 of the Negotiable Instruments Act, 1881. Section 139 raises only a rebuttable presumption that the cheque was issued for a debt or liability; it does not make an underlying illegal or unrecoverable liability legally enforceable. The admitted cash nature of the loan rebutted the presumption on a preponderance of probabilities, so the acquittal was rightly recorded and leave to appeal was refused. en-us Tue, 24 Feb 2009 00:00:00 +0530 Fri, 27 Oct 2023 12:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=295082 A cheque issued against an unaccounted cash loan, not disclosed in income tax returns, was held not to be issued in discharge of a legally enforceable debt under Section 138 of the Negotiable Instruments Act, 1881. Section 139 raises only a rebuttable presumption that the cheque was issued for a debt or liability; it does not make an underlying illegal or unrecoverable liability legally enforceable. The admitted cash nature of the loan rebutted the presumption on a preponderance of probabilities, so the acquittal was rightly recorded and leave to appeal was refused. Case-Laws Indian Laws Tue, 24 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=295082