Consolidated Coffee Ltd. v. State of Karnataka

248 ITR 432Supreme Court of India2001#4737 most cited

What is Consolidated Coffee Ltd. v. State of Karnataka authority for?

Expenses are to be apportioned among various units based on turnover, a method approved by the Supreme Court. The method of allocating exempt income by way of dividends to total gross revenue is also upheld.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

Consolidated Coffee Ltd v State of Karnataka · apportionment of expenses · turnover · exempt income · dividends · Rule 8-D · Section 14A

Also reported as

9 SCC 720

Sections most often in play

Section 92BSection 115JBSection 234DSection 271(1)(c)Section 36(1)(iii)Section 37(1)Section 14-ASection 143(2)

Issues it is cited on

bright line testamp expenditurecomparable uncontrolled price methodsection 92(1)cost plus methodfunctional analysissection 80jjasection 80jjaasection 92c(3)section 92fmanagement feesbenchmarking analysis

Judgments citing Consolidated Coffee Ltd. v. State of Karnataka

M/S Fosroc Chemicals (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result, appeal of assessee for AY 2010-11 is allowed for

ITA 87/BANG/2016[2007-08]Status: DisposedITAT Bangalore17 Oct 2016AY 2007-08

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Miss Neera Malhotra, CIT(DR)
Section 144CSection 220(2)Section 234DSection 92C

…This power is vested with the AO only. Having regard to the comparable cases, as far as quantification of the expenses is concerned, we find that as held by the Hon'ble Supreme Court of India in the case of M/ s Consolidated Coffee Ltd., Vs State of Karnataka 248 ITR 432 (cited supra), has held that allocation of expenditure on the basis of turnover is justified. Since these findings of the TPO on the rendering of services and allocation of expenses are erroneous, we set aside the matter to the TPO with a direction to recompute the ALP by taking into consideration the allocated expenses by the AE to assessee. Fur…

Asst.C.I.T., Bangalore vs. M/S Fosroc Chemicals India Private Limited, Bangalore

In the result, appeal of assessee for AY 2010-11 is allowed for

ITA 295/BANG/2015[2010-11]Status: DisposedITAT Bangalore17 Oct 2016AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Miss Neera Malhotra, CIT(DR)
Section 144CSection 220(2)Section 234DSection 92C

…This power is vested with the AO only. Having regard to the comparable cases, as far as quantification of the expenses is concerned, we find that as held by the Hon'ble Supreme Court of India in the case of M/ s Consolidated Coffee Ltd., Vs State of Karnataka 248 ITR 432 (cited supra), has held that allocation of expenditure on the basis of turnover is justified. Since these findings of the TPO on the rendering of services and allocation of expenses are erroneous, we set aside the matter to the TPO with a direction to recompute the ALP by taking into consideration the allocated expenses by the AE to assessee. Fur…

M/S Fosroc Chemicals (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result, appeal of assessee for AY 2010-11 is allowed for

ITA 188/BANG/2015[2010-11]Status: DisposedITAT Bangalore17 Oct 2016AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Miss Neera Malhotra, CIT(DR)
Section 144CSection 220(2)Section 234DSection 92C

…This power is vested with the AO only. Having regard to the comparable cases, as far as quantification of the expenses is concerned, we find that as held by the Hon'ble Supreme Court of India in the case of M/ s Consolidated Coffee Ltd., Vs State of Karnataka 248 ITR 432 (cited supra), has held that allocation of expenditure on the basis of turnover is justified. Since these findings of the TPO on the rendering of services and allocation of expenses are erroneous, we set aside the matter to the TPO with a direction to recompute the ALP by taking into consideration the allocated expenses by the AE to assessee. Fur…

The Commissioner of Income Tax vs. M/S Fosroc Chemicals India Pvt Ltd

The appeals are dismissed

ITA/492/2015HC Karnataka22 Mar 2016

Bench: B.V.NAGARATHNA,JAYANT PATEL

Section 260

…power is vested with the AO only. Having regard to the comparable cases, as far as quantification of the expenses is concerned, we find that as held by the Hon’ble Supreme Court of India in the case of M/s Consolidated Coffee Ltd., Vs State of Karnataka 248 ITR 432 (cited supra), has held that allocation of expenditure on the basis of turnover is justified. Since these findings of the TPO on the rendering of services and allocation of expenses are erroneous, we set aside the matter to the TPO with a direction to 11 recompute the ALP by taking into consideration the allocated expen…

ACIT, Hubli vs. Regional Oil Seeds Growers Co-Op Union Ltd., Hubli

In the result, the appeals of the revenue are dismissed

ITA 1183/BANG/2015[2010-11]Status: DisposedITAT Bangalore07 Mar 2016AY 2010-11

Bench: Smt. Asha Vijayaraghavan & Shri Inturi Rama Rao

For Appellant: Dr.P.K.Srihari, Addl.CIT(DR)For Respondent: Shri Ramasubramanian, CA
Section 80PSection 80P(2)(a)

…y, then the question that arises about apportionment of common expenditure which has been done in the proportion of turnover. This is in consonance with law laid down by the Hon’ble Supreme Court in the case of Consolidated Coffee Ltd. vs. State of Karnataka (248 ITR 432). Hence, he submitted that no interference is called for. 5.3 We heard the rival submissions and perused the material on record. There is no dispute about eligibility of the assessee co-operative society for deduction u/s 80P(2)(a)(iv) of the Act. The dispute is only with regard to method of arriving at profit from the activity which is eligible…