1997 (10) TMI 26

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....instance of the Revenue, the Incometax Appellate Tribunal, Madras, has stated the case and referred the following question of law for the assessment year 1981-82 under section 256(1) of the Income-tax Act, 1961, for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the transactions of borrowing and re....

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....Income-tax (Appeals) on appeal held that the instruments were only promissory notes and not hundis and therefore deleted the additions. The Appellate Tribunal on further appeal by the Revenue seems to have proceeded on the basis that the instruments drawn were only promissory notes and, therefore, the provisions of section 69D of the Act are not applicable and directed the Income-tax Officer to ve....

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....urt in CIT v. Paranjothi Salt Co. [ 1995] 2 11 ITR 141. This court has held that where the document contained a clear and categorical promise and undertaking to pay those who had made available the amounts, together with interest on and from the date on which the amounts were repayable (it does not) satisfy the requirements of hundis, the provision of section 69D of the Act are not applicable. It ....