The term ‘money’ in context of S.69A –means only Indian currency notes and coins.

[DEVKUMAR KOTHARI]

Money – general meaning and perceptions:

Money is a medium of exchange that is generally  centralized by government of any country and is  accepted, recognized, and facilitates transactions of goods and services, can be regarded as money.

The monetary system varies with the governments and countries. Different countries have different currencies. The central Government, Central Bank of any country and authorities appointed are responsible for monitoring the monetary system.

In India The Central Government of India and the Reserve Bank of India

Indian currency:

Analysis of  relevant information from websites of Reserve Bank Of India.

  https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id=3158

Indian Rupee (INR) is  the currency of India . It is  called rupee.

 One Rupee consists of 100 Paise.

The symbol of the Indian Rupee is ₹.  

Legal tender:

We find currency notes and coins  of different denomination in circulation and use. These are Legal Tender  if   legally tenderable for discharge of debt or obligation that means unless withdrawn.  Currency notes in rupees and coins in rupees and paise both  are legal tender in India.

The coins are  issued by Government of India under Section 6 of The Coinage Act, 2011,

Every banknote issued by Reserve Bank of India ,unless withdrawn from circulation, shall be legal tender at any place in India .

 ₹1 notes issued by Government of India are also Legal Tender.

Therefore, only above currencies are legal tender in India.

Any foreign currency is not legal tender in India.

Scope fo this articles

Provisions of S.69A of Income-tax Act,1961 are considered in this article and scope is  limited to  meaning  and significance of ‘money’ as used in S.69A.

Section 69A is to provide scope and authority to assessee value of  certain items covered in this section if these are found to be owned by and assessee but are not recorded in his books of account and / or if the assessee is unable to provide a satisfactory explanation about  nature and source of  acquisition of such items by the assessee. The section is reproduced below with highlights added:

[Unexplained money, etc.

69A. Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the ²[Assessing] Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.]

We can analyze  the provision as follows:

Items covered are:

 money,

bullion,

 jewellery or

other valuable article

When provision is applicable

When assesse is found to be owner of any  items  which are covered

 and

Such item is not recorded in the books of account, if any, maintained by him for any source of income and

the assessee offers no explanation about the nature and source of acquisition

or the explanation offered by him is not, in the opinion of the ²[Assessing] Officer, satisfactory,

then

the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.

What can be deemed to be income:

The money

And the value of any other item covered in this section.

Thus we find that  with expression  ‘ the  money’ is used without addition of words to make valuation of it like ‘ value of money’. This is because here in this provision ‘ the money’  means indian currency that is indian  rupees and paise and any other currency is not covered.

Indian currency is measured in terms of its face value. For example,  a currency note of Rs.500 will be Rs. 500 and it cannot be valued at higher or lower amount.

Whereas if any foreign currency is found then it will be valued at the market rate prevailing and it will fall under category ‘ other  valuable article or investment but not money.

Therefore, the term ‘money’  means indian rupees and paise and not any other currency.

Any other thing , currency  though convertible in terms of  indian rupees is not money , it can fall in other category of other valuable articles.

This point of view also find support for the reason that there are other provisions to deal with unexplained investments vide S.69,  Amount of unexplained / unrecorded / not fully recorded or not fully  disclosed investments etc. vide S.69B, unexplained expenditure  vide S. 69C.

Therefore, any instruments of saving, bank account, bonds and securities, loans and advances, promissory notes, bill of exchange  etc. though mentioned in terms of Indian rupees  cannot be described ‘money’ to fall in scope of S.69A.

Readers are requested to share their views.