Problem regarding a/c payee cheque

you cannot check if the cheque is an account payee cheque or not.  However in the Bank Statement it is stated as          'By Clearing' this means that the cheque is being crossed.

As per the Tax Audit guidance note issued by ICAI, a coment is required to given in the Tax Audit Report as follows:

It is not possible for me/us to verify whether the payment is being made by account payee cheque/draft, as the necessary evidence is not in the possession of the assessee.

Agree Wid Mr. Grirdhar

however i m giving here a link which may more clear...ur doubt

https://docs.google.com/viewer?a=v&q=cache:eUzoLxraaOMJ:www.bcasonline.org/webadmin/news/newsimages/393-SupplementaryGuidanceNote.pdf+guidence+note+on+account+payee+cheque&hl=en&gl=in&pid=bl&srcid=ADGEESjOTNnV98dqcInqjbv98-rWN2w-B3_At-jebqVRjJOWdxqWkckJ3M8oBFxgxVKUfT4moznUNQgJ1KikN54kAVFkY8ucVGETVpkbaI3Nkuaf1Qx65r7cXjUp7luVPEZ-no1hoyhM&sig=AHIEtbRfX7cJNpmV1zzT3rymUQbkiv55sA

See.

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