Telangana HC upholds cost of goods sold-based apportionment of common expenses over turnover  

PCIT Vs Prabhat Agri Biotech Ltd. (Telangana High Court) In the case of PCIT Vs Prabhat Agri Biotech Ltd., the Telangana High Court addressed the method of apportioning common expenditures between agricultural and trading activities. The assessee, engaged in seed production and trading, submitted a bifurcated profit and loss account dividing expenses based on the cost of goods sold (CoGS). The Assessing Officer (AO), however, reallocated these expenses based on turnover, arguing that turnover better reflected business operations. This resulted in revised income calculations, prompting the asse...