1995 (2) TMI 5

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the court was delivered by T. N. C. RANGARAJAN J.--The short facts leading to this reference are that the assessee had borrowed some money on hundis and repaid the same during the previous year ended March 31, 1978, corresponding to the assessment year 1978-79, through demand drafts. The Income-tax Officer noted that section 69D provides for disallowance of any amount repaid otherwise than thr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... section 69D should be taken to have been fulfilled. On these facts, the following questions have been referred : " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the assessee had ful filled the requirements of section 69D by making repayment through demand drafts ? (2) Whether, on the facts and in the circumstances of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rcumstances it cannot be held that for the purpose of disallowance under section 69D, a bank draft cannot be equated to an account payee cheque. The respondent, though served, has not appeared either in person or by counsel. We have perused the provisions of section 69D as well as the objects and reasons for the introduction of this section. The reference there is only to the Wanchoo Committ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 269T, which was introduced with effect from July 11, 1981, and section 269SS which came into effect from April 1, 1984. The provisions of section 69D came into effect in between, on April 1, 1977. A perusal of the analogous sections shows that they were also concerned with the transparency of transactions because section 40A(3) refers to expenditure incurred in the course of business above Rs. 10....