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Capital Expenditure how to show in Income & Expenditure

This query is : Resolved 
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(Querist)
04 March 2024 As per section 11, even capital expenditure will be allowed as application of income and fulfills condition of 85% utilization/application of income.

My query is:
1. If capital expenditure is allowed as application of income then whether we need to show this in income & expenditure account (Expenditure side) or in balance sheet (fixed assets)?
2. If shown in balance sheet then income expenditure account will show huge surplus and then how we will show that 85% condition has been met.
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CA Rashmi Gandhi

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CA Rashmi Gandhi (Expert)
05 March 2024 There is separate disclosure required for Capital and revenue expenditure. So you need not required to show the expense the expense in income & expenditure account.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
05 March 2024 1 Show it in balance sheet.
2 For 85% working for application of funds separate working will be made including capital and revenue expenditure.
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