Cash loan and cheque dishonour

Alok Agarwal (Querist) 27 June 2014 This query is : Resolved
Dear Sir/Mam,

Thanks for having such a legal advise platform!

In August 2013 I gave loan of Rs. 2 lacs to a known friend through NEFT from my personal account. Than in November I gave him cash loan of Rs. 120000 out of my income received in cash, which I showed in Balance Sheet and paid income tax on it. Than again in May I gave him cash loan of Rs. 50000 by withdrawing it from my account. Now he issued cheques with June 2014 date for all the above amounts separately in my name. Except for Rs. 50000 he has issued cheque in Self (no name on cheque accept Self) with signature also on back of the cheque. Now he has become defaulter and said that he won't return my money. I asked him to issue cheque of Rs. 50000 in my name, but he refused.

My question is that Cash loan is recoverable or not. Also whether the self cheque he has given is liable to get paid under section 138?

I have no worry for loan given through NEFT.

Cash loan given to him had been given out of my taxable income and as of now my personal balance sheet shows Rs. 170000 cash in hand, which I gave as cash loan.
I have already paid tax on such amount.

Or I have to show this amount of 170000 in my balance sheet as Cash Loan to XYZ instead of showing it cash in hand. Please advise!

Would appreciate your advise!

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