TaxTMI 
TaxTMI 
2008 (9) TMI 943
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....ereinafter to be referred as 'the Act') on account of alleged unexplained cash credit. Under ground No. 2, the revenue had challenged the action of the Commissioner Income-tax (Appeals) in deleting the addition of Rs. 5,49,189/- made by the assessing officer on account of disallowance of deferred revenue expenditure. The Tribunal confirmed the findings of the Commissioner Income-tax (Appeals) in respect of both the grounds and dismissed the revenue's appeal. With regard to ground No. 1, the Tribunal noted that the assessing officer had treated the sum of Rs. 23,00,000/- appearing in the books of the assessee in the name of M/s Mahamaya Finance Company and M/s Laxmi Finance and Traders as unexplained. The said concerns were pro....
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....ge the burden upon him was to explain the relevant cash credits by establishing the identity and capacity of the concerned creditors as well as indicating the genuineness of the relevant transactions. The Tribunal concluded that the assessee had discharged this burden and, therefore, there was no reason for the assessing officer to treat the said cash credit as unexplained merely because M/s Punjab Tractors was not traceable. More importantly, the Tribunal noted that the attempt sought to be made by the assessing officer to verify the whereabouts of the M/s Punjab Tractors was nothing but an attempt to examine the source of the source which was not permissible. Consequently, the Tribunal held that the addition of Rs. 23,00,000/- made by the....
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....o the assessment year in question. The advertising expenses had been incurred on account of the franchise agreements. It has been noted in the order passed by the Commissioner Income-tax (Appeals) that during the year under consideration, the appellant conducted the business by appointing franchisees for the showrooms meant for the sale of the footwear but due to some unforeseen circumstances, the agreements with the franchisees got revoked and there was no possibility to carry out or to continue with the franchise business in subsequent years. The Commissioner Income-tax (Appeals), therefore, noted that the assessee had rightly claimed the expenditure during the year in question as the business had been started during that year. It would b....