Urgent ! Hundi ? cash credit ?

Mr.Abhishek

"Hundi" is "Bill Of Exchange" Please refere Negotiable Instruments Act.

Cash Credits as per section 68 of Income-tax Act, 1961 are the sums found in the books of account of an assessee maintained by him and the assessee fails to offer a satisfactory explanation for the source of such cash credits to the assessing officer  those are treated as the income of the assessee.

The other cash credit you mean is the loan obtained by a business man/organisation on the streght of the current assets.

Best Wishes

Sathikonda