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2008 (9) TMI 943 - DELHI HIGH COURTAddition u/s 68 - unexplained cash credit - Disallowance of deferred revenue expenditure. Addition u/s 68 - unexplained cash credit - HELD THAT:- We have heard the ld counsel for the appellant and have examined the findings returned by the Tribunal as well as those returned by the CIT (A) and find ourselves to be in agreement with the conclusions arrived at by the Tribunal. The AO is not permitted to examine the source of the source once the assessee has been able to establish that the transaction with his creditors is genuine and that the creditors identities and creditworthiness have been established. In this case, this had been done, therefore, it was not open to the AO to make the addition after entering upon an examination of the source of the source - Consequently, we feel that no interference is called for on this conclusion in the impugned order passed by the Tribunal. Disallowance of deferred revenue expenditure - We note that this is a clear finding of fact and the Tribunal has accepted the findings returned by the CIT (A) and has permitted the deduction of expenses towards advertisement which were admittedly of a revenue nature. The assessee had deferred the revenue expenditure in the year preceding the previous year relevant to the assessment year in question. The advertising expenses had been incurred on account of the franchise agreements - The finding of the CIT (A) is that the business has commenced in the year in question. He has also returned a finding that due to certain reasons, the franchisee agreements got revoked in this year also. There was no option left with the assessee but to claim the deduction in this year after having deferred the revenue expenditure in the preceding year. The Tribunal confirmed the findings of the CIT (A). We do not find any infirmity in the impugned order. In any event, no substantial question of law arises for our consideration. The appeal is dismissed.
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