TMI Blog1983 (2) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... involved in this appeal, the assessee borrowed certain amounts on documents alleged to be hundi, the details of which are set out in the order of the AAC. The ITO considered them to be loans borrowed on hundi and as they were received in cash, which is otherwise than through an account payee cheque, he considered that the provisions of section 69D were attracted warranting add back of the total amount of such borrowal as the assessee's income from 'other sources'. Section 69D provides that where any amount is borrowed on a hundi from, or any amount due thereon is repaid to, any person otherwise than through an account payee cheque drawn on a bank, the amount so borrowed or repaid shall be deemed to be the income of the person borrowing or r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not support the assessee in the facts of this case. Referring to the circular mentioned above, it is pointed out that the circular covers only darshani hundi transactions of the type referred to in items (i), (ii) and (iii) of para 2 of the circular and according to it the transactions not of the type referred to above on darshani hundi had to be examined with reference to the facts and circumstances of each case so as to determine whether or not there is a borrowal on such hundis, in which case the provisions of section 69D would apply. The learned counsel for the assessee besides relaying on the order of the Tribunal in IT Appeal No. 1162 of 1979, dated 24-10-1980, also referred to other orders of the Tribunal, namely, Second ITO v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in common use, the Court noticed a definition or description of a hundi in Wilson's Glossary published in 1940 and edited by Mr. Ganguly and Mr. Basu, advocates of the Court and the description or definition contained therein is 'hundi---a bill of exchange'. After referring to the provisions of the Stamp Act, it was found that an instrument on which the word 'hundi' is engraved may be either a promissory note or a bill of exchange and the word 'hundi' on the stamp paper does not determine the character of the document which has to be done with reference to the provisions of the document itself. From the definitions of 'promissory notes' and 'bills of exchange', it was observed that the essential character of a promissory note is that i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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