Capitalisation of expenses

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rizwan (Querist)
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16 December 2013 If a person has taken a property on rent and incurred expense on renovation, can this expense be capitalised

please qoute section for your answer

Ganeshbabu K

Ganeshbabu K (Expert)
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16 December 2013 Can be capitalised and required to be depreciated over the peirod of lease or rental period
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rizwan

rizwan (Querist)
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16 December 2013 Thanks sir but pls qoute the supporting with section or case law

Ganeshbabu K

Ganeshbabu K (Expert)
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16 December 2013 no section or case law available
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generally any fixed asset is required to depreciated over the period of its useful life
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so here we can take lease period/rental period can be taken as useful life