Section 69D of the Income-tax Act, 1961--Clarification regarding

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....p;          All Commissioners of Income-tax.        Subject: Section 69D of the Income-tax Act, 1961--Clarification regarding. Sir, Reference is invited to Board's Circular No.208 (F.No.208/7/76-ITA.II)* dated 15th November, 1976, in which the provisions of section 69D of the Income-tax Act, 1961, were explain....

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....wal of amounts and as such does not fall within the scope of section 69D. There are more than two parties in a Darshani hundi. Normally four parties are involved in the case of a Darshani hundi, viz., (i) the rakhya (the holder or purchaser), (ii) the drawer (an indigenous banker or a vyapari), (iii) the drawee (normally an indigenous banker but can also be a vyapari), and (iv) the payee. If the p....

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....n 'C', the drawee in favour of 'B' or a third party 'D' for the purpose of payment of the price of goods purchased or for settling the account.  (b) For such purposes 'B' can also draw a hundi on 'A' either in his own favour or in favour of a third party 'D'. (iii) 'A' has an account with an indigenous banker 'C' who has granted a credit facility to 'A' and handed over a hundi book to h....