Consolidated Coffee Ltd. vs State Of Karnataka

The Supreme Court addressed the allocation of office expenditure under the Agricultural Income-tax Act for the assessment years 1981-82 to 1985-86, holding that the assessing authority's allocation based on gross receipts from agricultural and non-agricultural activities was justified. The Court emphasized that the connection between expenditure and income must be established for deductions, affirming the authority's view that overhead expenses were necessary for deriving both agricultural and non-agricultural income. The revision petitions were dismissed, upholding the decisions of the appellate authority and the Tribunal.