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2012 (8) TMI 296 - AT - Income TaxDis allowance of prior period development expenses - Held that:- Once the survey party has drawn a trading account as on the date of survey mentioning land development expenses inclusive of the expenditure in question pertaining to bricks purchases, cement pipe, architect fees, registration fees, sundry expenses, moram purchases, colour purchases - the AO’s action would tantamount to double jeopardy, that on one hand net profit was arrived at after considering those expenses and on the other hand again those were added on the pretext of disallowance of expenses pertained to Assessment Year 2005-06 - in favour of assessee. Disallowance out of labour expenses - Held that:- When the Appellant has not engaged any contractor and done the development work departmentally, he has to engage labour at his own and cost of the labours cannot be denied and in case of retail labour, one cannot expect a bill but the reasonable record would be a voucher or labour register. Since the AO has not denied that the Appellant has maintained documentary evidence and the AO has not pin-pointed any defect in the same the disallowance made at 10% of the labour expenses on the reasoning that the documentary evidences are self made cannot be sustained - in favour of assessee. Disallowance of excess claim of depreciation on medical equipments - Held that:- CIT(A) has examined the usage of each of the equipment in question and, therefore, rightly held that they were nothing but in the category of “life saving medical equipments” on which depreciation @ 40% was allowable - in favour of assessee.
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