M/S Rajasthan State Mines & Minerals ... vs Deputy Commissioner Of Income Tax, ... on 12 November, 2018
30. Now, coming to the specifics of the expenditure incurred at the
corporate and head office level, on perusal of the details available in
assessee's paper book, we find that the employee benefit expenses of
Rs 54,16,363 have been incurred at head office and Rs 19,93,68,866 at
the corporate office which needs to be considered for allocation.
Further, expenditure on establishment and other expenses at the head
office and corporate office has been shown as Rs 1,34,221 and
Rs 109,05,74,459 respectively. Out of which, donations amounting to
Rs 90 crores, selling expenses of Rs 1,51,40,735 and business
promotion expenses of Rs 40,36,383, and advertisement and
publication expenses of Rs 1,71,76,305 needs to be excluded and
remaining expenses need to be considered for allocation. The expenses
in the nature of employee costs and other establishment expenses so
worked out needs to be allocated in the ratio of turnover for the
purposes of determining the eligible profits under section 80IA of the
Act. The matter is accordingly set-aside to the file of the AO to verify
these figures and recalculate the eligible profits for the purposes of
21 ITA No. 705 & 773/JP/2018
M/s Rajasthan State Mines and Minerals Ltd., vs. DCIT
section 80IA of the Act. In the result, the ground is partly allowed for
statistical purposes.