Question before the Court was \u00a0whether in case a transaction\u00a0 was not shown in the books of account and\/or the Income-tax returns of the holder of the cheque in due course and\/or\u00a0 was in violation of the provisions of\u00a0269SS\u00a0of the\u00a0Income-tax Act, 1961\u00a0was a \u201clegally enforceable debt\u201d and could be permitted to be enforced by institution of proceedings under section\u00a0138\u00a0of the\u00a0Negotiable Instruments Act, 1881.Court held that\u00a0 \u00a0\u00a0a transaction not shown in the books of account or in the Income-tax return of the holder of the cheque in due course could be permitted to be enforced by instituting proceedings under section\u00a0138\u00a0of the Act of 1881 in view of the presumption under section\u00a0139\u00a0of the Act of 1881 that such cheque was issued by the drawer for the discharge of any debt or other liability and execution of the cheque having been admitted. Violation of section\u00a0269SS\u00a0or section\u00a0271AAD\u00a0of the Act of 1961 would not render the transaction unenforceable under section\u00a0138\u00a0of the Act of 1881.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 269SS : Acceptance of loans and deposits-Otherwise than by account payee cheque or account payee bank draft-Dishonour of cheque-Loan exceeding Rs.20,000-Violation of section 269SS or section 271AAD of the Act of 1961 would not render the transaction unenforceable under section 138 of the Act of 1881.[S. 271AAD, 271D Negotiable Instruments Act, 1881, S. 118, 138, 139]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41018","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aFA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41018"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41018\/revisions"}],"predecessor-version":[{"id":41019,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41018\/revisions\/41019"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}