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2012 (6) TMI 683 - AT - Income TaxDisallowance of claim of deduction u/s 80IB - Both the units of assessee were integrated as one unit - the assessee claimed deduction in respect of pellet feed division, for which separate computation of income was filed submitting that conversion of mash feed into pellet feed amounts to manufacturing and not processing and both are commercially two distinct products having their own peculiar features and advantages and disadvantages - Held that:- Examining the stages through which the mash feed is converted into pellet feed there has been only processing' while the production of pellet feed is done by following various stages, namely, i) batch weighing, ii) grinding, iii) mixing, iv) conditioning with steam, v) pelleting, vi) cooling, vii) crumbling and, finally, viii) packing - doing something to the goods to change or alter their form can be termed as processing and does not amount to manufacture -CIT v. Casino (P.) Ltd.[1972 (10) TMI 17 (HC)]- doing something to substance to change or alter their form can be termed as processing and does not amount to manufacture as a production of a new substance does not mean merely to produce some change in the substance -decided against assessee. Disallowance of foreign travel expense - Held that:- As the assessee failed to prove that the expenditure incurred towards foreign travelling expenses of two persons is wholly and exclusively for the purpose of its business by way of documentary evidence, dis allowance is warranted - against assessee. Levy of interest u/s 234D - Held that:- As the provisions of section 234D having been inserted with effect from 1st June 2003, applicable only from the assessment year 2004-05. Since the assessment year under consideration is 2003-04 interest charged u/s 234D need to be deleted - in favour of assessee. Validity of the reopening of the assessment u/s 147 - Held that:- As the assessee has to initially file a return and after that the assessee can ask reasons for issuing the notices for re-assessment, but in the present case, the assessee has not at all filed the return of income in the first place to seek for reasons recorded and hence the reopening u/s 148 is valid - against assessee.
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