https://www.taxtmi.com/caselaws?id=445110 Bombay HC held that transactions violating Section 269-SS of Income Tax Act (accepting cash exceeding Rs. 20,000) remain legally enforceable under Section 138 of Negotiable Instruments Act. The court ruled that while such violations attract penalties under Section 271-D, they do not nullify the underlying transaction or debt. Unaccounted cash transactions can be enforced through cheque dishonor proceedings due to presumption under Section 139 that cheques discharge debts. The court affirmed earlier decisions and overruled contrary precedent, establishing that Income Tax Act violations don't render transactions unenforceable under negotiable instruments law. en-us Sat, 19 Aug 2023 00:00:00 +0530 Wed, 01 Nov 2023 10:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445110 Bombay HC held that transactions violating Section 269-SS of Income Tax Act (accepting cash exceeding Rs. 20,000) remain legally enforceable under Section 138 of Negotiable Instruments Act. The court ruled that while such violations attract penalties under Section 271-D, they do not nullify the underlying transaction or debt. Unaccounted cash transactions can be enforced through cheque dishonor proceedings due to presumption under Section 139 that cheques discharge debts. The court affirmed earlier decisions and overruled contrary precedent, establishing that Income Tax Act violations don't render transactions unenforceable under negotiable instruments law. Case-Laws Indian Laws Sat, 19 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445110