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TMI Blog2017 (4) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... is case is the complainant Bank, has elected to treat the instrument as a cheque it cannot but be treated as a cheque thereafter. This is an irretrievable corollary of exercising such an election by the holder himself. A complaint is maintainable under Section 142 in the event a banker’s cheque is dishonoured. This Court also notices that the expression used in the Income Tax itself is “a bill of exchange”, which is a class of instruments, that cannot be ignored or disallowed by virtue of Section 40A(3) read with Rules 6 DD of the Income Tax Rules. No substantial question of law arises. - ITA 260/2017 - - - Dated:- 28-3-2017 - MR. S. RAVINDRA BHAT MR. NAJMI WAZIRI JJ. Appellant Through: Mr. Zoheb Hossain, Advocate. Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sum of money. This is the quintessence of a bill of exchange. Learned Senior Counsel for the respondents contended that in every bill of exchange there must necessarily be three parties, the maker, the payee and the person to whom the direction is given to pay. As a draft or a pay order contains only two persons i.e. the drawer and the payee, it is only an instrument promising to pay a certain sum of money, according to the learned counsel. He made an endeavour to show that a draft may at best be a promissory note but the bid made by him did not succeed as it is a difficult task to bring the draft or a pay order, as in this case, within the purview of the definition of promissory note in Section 4 of the Act. The indispensable postulate f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat a draft is otherwise not a cheque and it is declared to be a cheque only for the limited purpose of Chapter XIV which deals with crossed cheques . We are unable to agree with the said contention that Section 131A is intended to limit the operation of a draft as a cheque only for crossing purposes. In our view, the said section is intended to widen the scope of crossed drafts as to contain all incidences of a crossed cheque. This is for the purpose of foreclosing a possibility of holding the view that draft cannot be crossed. 11. Even if it is possible to construe the draft either as a promissory note or as a bill of exchange, law has given the option to the holder to treat it as he chooses. This can be discerned from Section 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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