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4.2. Under the head salary and wages, the appellant has incurred total expenditure of Rs.3,36,44,487/- as against expenses of Rs.2,57,35,873/- incurred in the immediate preceding year. I find that the increase in the expenses under this head is 30.73%. The turnover of the appellant has increased from Rs. 4.29 crores to Rs. 5.29 crores as compared to last year registering an increase of 23.31%. As a matter of fact, the increase/decrease of the expenses as well as turnover does not take place in a mechanical manner since various factors result in fluctuation. Thus, keeping in view the increase in the turnover, I am of the considered view that the increase under the head salary and wages by 25% is certainly justified. Thus, only 5% of increase in the salary and wages appears to be excessive which further needs to be amortized for development of the software. Consequently a sum of Rs. 12,86,793/- needs to be amortized further from the salary and wages expenses instead of Rs.23,72,583/-amortized by the Assessing Officer. In the result disallowance is restricted to Rs. 12,86,793/-. The Assessing Officer is directed to allow the consequential relief. Thus, appellant succeeds partly in respect of Ground No. 2.