06 June 2009
Whether amount spend on conversion of existing old plant and machinery in to CNC machinery in case of Automobiles Industry amount to capital expenditure or revenue expenditure. Quote case law if any.
07 June 2009
SEGREGATION OF CAPITAL & REVENUE IS DONE ON THE BASIS OF CAPACITY OF PLANT AFTER CONVERSION IF CAPACITY HAS BEEN INCREASED BENEFIT OF WHICH WILL BE AVAILABLE FOR MANY YEARS IS AMOUNTED TO CAPITAL EXPENDITURE.
CAclubindia
