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TMI Blog2012 (2) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of sundry balance written off amounting to Rs.2,57,379/- and disallowance of traveling expenses Rs.2,23,038/-. As per AO, the assessee had been asked to justify the write off of sundry balances and also give details of traveling expenses but the assessee did not submit any details in respect of both the claims. The AO observed that the onus lay on the assessee to prove the claim which had not been done. The AO therefore, disallowed the entire claim of sundry balance written off ( Rs.2,57,379) and 20% of traveling expenses which came to Rs.2,23,038/-. In appeal CIT(A) observed that before him also, the assessee did not submit any details/evidence of the above claims. Therefore, he confirmed the disallowance aggrieved by which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses to the business of the assessee has not been given or examined by the AO. In our view, for considering the allowability of claim, further details as mentioned above are required to be examined. We, therefore, set aside the order of AO for passing a fresh order after necessary examination in the light of observations made above and after allowing opportunity of hearing to the assessee. 3. The second dispute which is relevant to the appeal of the assessee is regarding disallowance of expenses under section 14A of the I.T. Act. The AO noted that the assessee had received dividend income of Rs.6,432/- which was exempt from tax but the assessee had not disallowed expenses relating to the exempt income. The AO, therefore, computed the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the light of the judgment of the Hon'ble Bombay High Court in case of Godrej and Boyce Manufacturing Co. Ltd. (supra) and after allowing opportunity of hearing to the assessee. 4. The third dispute which is relevant only to the appeal by the revenue is regarding disallowance of claim of deduction under section 80 IB of the Act. The AO during the assessment proceedings noted that the assessee had claimed deduction of Rs.14,16,300/- under section 80IB. The assessee submitted that it was engaged in the business of manufacturing of polished and finished marble slabs, tiles, table tops etc. from imported and rough marble blocks at its factory located at Silvassa. The assessee explained that the process of converting rough marble blocks into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and finished marble slabs, tiles, table tops etc. from rough marble blocks. The issue is whether conversion of rough marble blocks into polished and finished marble slabs, tiles, table tops etc. amounts to manufacture or not. We find that the same issue has already been considered by the Tribunal in assessee's own case in assessment years 2000-01, 2001-02 in ITA No.2968/M/04 and ITA No.7452/M/04. The Tribunal noted that the assessee was using rough marble blocks, a solid piece of hard material as raw material and subjected the same to various processes with help of machines and manual labour to produce finished products like polished marble slabs, tiles table tops etc. The end product was recognized as commercial product distinct from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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