Dishonor of cheque
Shrivallabh Choube
(Querist) 08 April 2014
This query is : Resolved
Complainant filed his balance sheet and proffit and loss account with his complaint,
in which he showed advance of money to the accused. But no statement of account had been filed on record. Also the income shown in P & L Account and income shown in his I.T. Return are not same.
Therefore
Whether the balance sheet and profit and loss Account cant be considered for existence of legally enforceable debt in absence of books of account ?
ajay sethi
(Expert) 08 April 2014
is there major difference in income shown in income tax returns and PL account ? whether advance of money is admitted by accused in reply to legal notice?
T. Kalaiselvan, Advocate
(Expert) 09 April 2014
What was stated in the reply notice? whether the liability was accepted or not, if yes, the case is valid.
Advocate. Arunagiri
(Expert) 09 April 2014
Yes balance sheet is a valid proof in the 138 case, to show the existing liability.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 09 April 2014
Mr Choube you are right that unless books of accounts are not there mere balance sheet has no evidence value.
And again it may show liability which does not mean legal liability.
Accused has all the right to rebut it.
Guest
(Expert) 10 April 2014
Mr. Chaube,
Your query is just like an academic query where you have not stated what actually is the problem you are facing and whehter the complainant has a proof of payment in the shape of money receipt or written acknowledgement of the borrower, or what actually was the mode of payment to the borrower?
Secondly, what is the link between the borrowed amount by the borrower and the income tax return of the company?
Thirdly, you have not stated, whether the P&L account contains the assets and liability part of the company or not.
Fourthly, you have not stated whether the P&L and A&L accounts and the Balance Sheet are duly audited by an auditor or not?
Fifthly, what do you mean by statement of accounts and why that should be filed just to claim the amount of dishonoured cheque from the borrower? Do you think that the complainant should submit the detailed transaction list of receipts and payments of the whole year in a statement of account just to claim the amount of dishonour of merely a single cheque from the borrower?
Sixthly and most importantly, you have not stated, whether you are fighting the case of the complainant or the borrower whose cheque has been dishonoured.
From your description it is not understood whether you are fighting a case of your client about cheque dishonour or something else!
Rajendra K Goyal
(Expert) 12 April 2014
Author, please reply the clarification sought by the expert PS Dhingra ji, so that advise may be given accordingly.
Shrivallabh Choube
(Querist) 16 April 2014
In the reply notice the advance of money had been specifically denied. That the complainant also not ready to produce or called his assessment of income tax return. My further query is that the payment shown to be advance to me were in cash and they were more than rs. 18000/-. That the Income Tax act sec. 40 B (2), Sec. 269 SS and Sec. 269 ST is not allowing to tax payer to make payment in cash if more than Rs. 18000/- for purchase. In case payment is made then it is compulsory for the tax payer to show the name and PAN no. of the said person in assessment to whom payment had been made. Whether my opinion is right or not.
Shrivallabh Choube
(Querist) 17 April 2014
Dhingara Sir,
I am contesting the matter for accused. As the complainant had not filed any document for showing the advancement of loan to accused and by mere filing the balance sheet and p & L account trying to show that the amount covered by cheque is a legally enforceable debt.
According to me for claiming any amount covered by cheque and which is more than five lac and came to be paid in installment by making payment either Rs. 50,000/- or Rs. 1,00,000/- it is necessary for the complainant to prove those advancement of loan to accused by producing necessary books of account i.e. ledger, cash book, purchase register etc. However non filing of same is fatal to the case of the complainant. Moreover the balance sheet and profit & loss account are the reproduction of entries taken in books of account, but the same could not take place of those books of account which contained day to day transaction. Thus I asked that whether my opinion is correct that the balance sheet and P & L account can be treated as proof of existence of legally enforceable debt.
