TMI Blog2008 (1) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 1998-1999. 2. A search of the premises of one Kamal Chand Jain was conducted by the Revenue and they found a large number of documents purported to be hundis. One such document, drawn on a letter-head of the Assessee, was found in the premises of Kamal Chand Jain and it was believed to be a hundi for a sum of Rs.7 lakhs. A photocopy of the said document along with its English translation has been placed on record. 3. On the basis of the hundi and the presumption drawn under Section 69Dof the Income Tax Act, 1961 ('the Act'), the Assessing Officer assessed a sum of Rs.7 lakhs in the hands of the Assessee. 4. The Assessee preferred an appeal before the Commissioner of Income Tax (Appeals) ['CIT(A)'], who conducted a rather de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may also be made to Commissioner of Income Tax v. Paranjothi Salt Co., (1995) 211 ITR 141 (Madras). 6. Needless to say, apart from the above requirements, the document should be executed on hundi paper and not on any other paper. 7. On the basis of the case law, the CIT(A) came to the conclusion that the document was not executed on a hundi paper but on the letter-head of the Assessee and that it did not have all the characteristics of a hundi as explained by the Andhra Pradesh High Court, the Calcutta High Court and the Madras High Court. In addition, it was a bilateral transaction. On this basis, the CIT(A) allowed the appeal of the Assessee and set aside the addition. 8. The Revenue then preferred an appeal before the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocument is not a hundi as explained by the Andhra Pradesh High Court, the Calcutta High Court and the Madras High Court, which decisions we have no reason to disagree with. Clearly, the document in question is not a hundi because it represents a bilateral transaction and it is also not on a hundi paper. In the absence of these vital ingredients, the document cannot be described as a hundi and therefore, the presumption under Section 69D of the Act would not be available to the Revenue. 11. Learned counsel for the Revenue has contended that the document was found from the premises of Kamal Chand Jain and therefore, it must be deemed to be a hundi. We cannot accept such a contention. From where a document is found cannot, by any stretch of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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