https://www.taxtmi.com/caselaws?id=793665 A promissory note carries the statutory presumption of consideration under Section 118 of the Negotiable Instruments Act, 1881, and that presumption stands where the defendant offers no specific denial, evidence, or cross-examination to rebut execution or loan advance. Failure to produce income-tax returns or other proof of financial capacity, by itself, does not justify an adverse inference unless the court first seeks clarification through the Evidence Act and CPC procedures. A possible breach of Section 269SS of the Income-tax Act, 1961 does not make the loan unenforceable or defeat recovery. The note-holder's claim, therefore, remained proved on the materials discussed. en-us Thu, 04 Jun 2026 00:00:00 +0530 Sat, 20 Jun 2026 08:04:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793665 A promissory note carries the statutory presumption of consideration under Section 118 of the Negotiable Instruments Act, 1881, and that presumption stands where the defendant offers no specific denial, evidence, or cross-examination to rebut execution or loan advance. Failure to produce income-tax returns or other proof of financial capacity, by itself, does not justify an adverse inference unless the court first seeks clarification through the Evidence Act and CPC procedures. A possible breach of Section 269SS of the Income-tax Act, 1961 does not make the loan unenforceable or defeat recovery. The note-holder's claim, therefore, remained proved on the materials discussed. Case-Laws Income Tax Thu, 04 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793665