Section 106 — Amount borrowed or repaid through negotiable instrument, hundi, etc

(1) Where any amount (including interest thereof) is borrowed or repaid
through a negotiable instrument or on a hundi, otherwise than an account
payee cheque, or through any mode as specified by the Board in this behalf, the
amount so borrowed or repaid (including interest paid on the borrowed amount)
shall be deemed to be the income of the person borrowing or repaying, as the case
may be, for the tax year in which the amount was borrowed or repaid.
(2) Where the amount borrowed under sub-section (1) has been deemed to be the
income of any person, such person shall not be liable to be assessed again in respect
of such amount under that sub-section on repayment of such amount.