Rajasthan State Warehousing ... vs Commissioner Of Income-Tax

The Supreme Court upheld the High Court's ruling that expenses must be allocated in proportion to the different sources of income, as per Section 37 of the Income Tax Act, 1961. The Court clarified that expenditures attributable to exempt income cannot be fully deducted, affirming the Income Tax Appellate Tribunal's decision. The appeal by the State Government Corporation was dismissed, confirming that only the portion of expenses related to taxable income is allowable.