Allawability of expense

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 February 2010 Respected Sir,

Whether expense incurred for the construction of building & office premises within the factory shall be allowed as expense while computation of profit?

20 February 2010 The exp seemsto be in the natre of capital and should be capitalised.

Exp would be disallowed.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 February 2010 thanx sir

20 February 2010 any expenses incurred for getting or generating any asset should be capitalised & will be capital nature. so the expenditure will not be allowed. however expenses on repairs & maintanance is a revenue type expenditure so that will be allwed as expenses

20 February 2010 It shall be capitalised

20 February 2010 yes , it shall be capitalised.


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