Complainant Fails to Disclose Loan in ITR or Prove Financial Capacity: Gujarat HC Denies Appeal in Rs. 15 Lakh Cheque Bounce Case [Read Order]
The HC noted that the applicant clearly admitted he had not shown the Rs. 15 lakh loan in his ITR, and there was no evidence to prove he had the financial capacity to give such a large amount in cash to the accused
![Complainant Fails to Disclose Loan in ITR or Prove Financial Capacity: Gujarat HC Denies Appeal in Rs. 15 Lakh Cheque Bounce Case [Read Order]](https://images.taxscan.in/h-upload/2025/06/21/2052162-complainant-fails-to-disclose-loan-disclose-loan-loan-disclose-loan-in-itr-taxscan.webp "Complainant Fails to Disclose Loan in ITR or Prove Financial Capacity: Gujarat HC Denies Appeal in Rs. 15 Lakh Cheque Bounce Case [Read Order]")
The Gujarat High Court denied leave to appeal in a Rs. 15 lakh cheque bounce case, observing that the complainant had failed to disclose the alleged loan in his income tax returns (ITR) or establish his financial capacity to advance such a sum. The appellant, who was the original complainant, appealed against the order dated 12.03.2025 by the 2nd Additional Judicial Magistrate,...
The Gujarat High Court denied leave to appeal in a Rs. 15 lakh cheque bounce case, observing that the complainant had failed to disclose the alleged loan in his income tax returns (ITR) or establish his financial capacity to advance such a sum.
The appellant, who was the original complainant, appealed against the order dated 12.03.2025 by the 2nd Additional Judicial Magistrate, Dholka, which acquitted the accused under Section 138 of the Negotiable Instruments Act, 1881.
Coming to the facts of the present case, the applicant had filed a complaint under Section 138 of the Negotiable Instruments Act, stating that he had given a Rs. 15 lakh hand loan to the accused, who in return issued four cheques. When three of those cheques were deposited, they bounced due to insufficient funds.
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The complaint stated that even after a legal notice was served, no repayment was made. The accused denied ever issuing the cheques and claimed the complaint was false. After hearing both sides and examining the evidence, the trial court acquitted the accused.
The High Court noted that during cross-examination, the complainant admitted he files income tax returns but did not record the Rs. 15 lakh transaction or maintain any books of accounts.
The court noted that the accused raised reasonable doubt, and the applicant failed to prove that the cheque amount was a legally recoverable debt. Since the case wasn’t proven beyond reasonable doubt, the trial court’s acquittal was found to be proper.
The High Court noted that the applicant clearly admitted he had not shown the Rs. 15,00,000 loan in his income tax returns, and there was no evidence to prove he had the financial capacity to give such a large amount in cash to the accused.
Justice S.V. Pinto upheld the impugned order passed by the trial court and dismissed the appeal.
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