9911796707
TMI BlogThe term ‘money’ in context of S.69A –means only Indian currency notes and coins.X X X X Extracts X X X X X X X X Extracts X X X X ..... The term ‘money’ in context of S.69A –means only Indian currency notes and coins. X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legally tenderable for discharge of debt or obligation that means unless withdrawn.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by Government of India under Section 6 of The Coinage Act, 2011, Every banknote issued by Reserve Bank of India ,unless withdrawn from circulation, shall be legal tender at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered 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 explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp;' 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 v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alued 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. X X X X Extracts X X X X X X X X Extracts X X X X
|
