DIRECT TAX

1. Assessee has to pay interest on demand sustained in remand proceedings if he fails to pay initial demand.

2. Guest charges received by club from its members weren’t taxable on principles of mutuality.

3. HC upheld sec. 69B additions on basis of DVO's report showing under statement of value of property by assessee.
IT : Where difference in consideration as disclosed by assessee and value as estimated by DVO indicated that consideration recorded was understated and DVO's report was to be relied upon to corroborate statement of assessee, addition made under section 69B was justified.

4. ITAT denied depreciation on buses as they were leased out on financial lease.
IT: Where machines that were not actually used but were ready to use, were eligible to depreciation

IT: Where assessee claimed prior period expenses, it was to be verified if said expenses had crystallized or not to allow said claim

IT: Where assessee engaged in mining gave buses on financial lease to transport corporation, assessee was not entitled to depreciation and only interest component of lease rental financial charge should be recognised as income

IT: Where revenue could not establish a nexus between interest bearing funds borrowed and those invested by assessee for bonds, disallowance under section 14A was not justified

IT: Where assessee was engaged in mining of lignite and it expanded said business, preoperative expenses incurred on same was allowable as revenue expenditure

IT: Where assessee was never in business of generation of power, interest expenditure incurred on new power project was not allowable under section 36(1)(iii)

IT: Where salary was paid to staff employed at residence of chairman, same being for purpose of assessee's business, was allowable.

5. Workers include managers and supervisors to ascertain eligibility of manufacturer for sec. 80-IB relief.

6. Delay in filing e-TDS return due to technical default in software of department won't attract penalty on assessee.