This document provides a summary of recent legal landmarks related to taxation in India. It lists 6 cases with details of the authority, section/rules of the Indian Income Tax Act involved, key ratio decided, case name and citation. The cases relate to topics such as interest income earned by cooperative societies being deductible, interest income of finance companies being taxable as business income, interest on non-performing assets not being taxable, appropriate benchmark for interest on loans to foreign affiliates, interest paid after business operations not being capitalized, and internal transactional net margin method not being rejected solely due to insignificant non-affiliate transactions.

1. VOLUME NO.: LLAT/847 OF 2016-17 DATE: 4 September 2014
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Dear Client,
We have pleasure in listing below some of the recent legal landmarks.
SrNo Authority Section/Rules RATIO(S)
Citation /Subject CASE(NAME OF ASSESSEE)
1.1 KAR HC 80P ITA
Interest earned by society on short-term deposits in course of providing credit
facilities was deductible u/s 80P
1.2 55TM447 Deductions
Tumkur Merchants Souharda Credit Cooperative Ltd
2.1 MUM ITAT 28(i) 37(1) 56 ITA
Interest income of finance co. not taxable as other sources of income if it was held as
business income in earlier yrs
2.2 63TM023 Business income
Preimus Investment & Finance Ltd
3.1 PUN ITAT 4 ITA
Interest on NPAs even if credited to the Profit & loss account is not chargeable to tax
3.2 ITA No 495_2012 Chargeability
The Solapur District Central Co-op. Bank Ltd
4.1 PUN ITAT 92C ITA
Interest on sums lent to foreign AE is to be benchmarked at LIBOR and not at
domestic prime lending rate
4.2 54TM384 Transfer Pricing
Varroc Engineering (P.) Ltd
5.1 GUJ HC 43(1) 32 37(1) ITA
Interest paid after execution of slump sale and initiation of business operations
couldnt be capitalized
5.2 55TM453 Definitions
Sandvik Chokshi Ltd
6.1 HYD ITAT 92C ITA
Internal TNMM couldnt be rejected just because value of transaction with non-AE
was insignificant
6.2 63TM092 Transfer Pricing
NTT Data Global Delivery Services Ltd