Capital Expenditure incurred for transfer of assets
This query is : Resolved
Rachit Gandhi
(Querist)
09 December 2009
Should Capital Expenditure incurred on transfer of assets from one location to another be capitalised??
CS.Bhagwati charan
(Expert)
09 December 2009
EXPENDITURE IS CAPITALISED IF ASSET IS FIXED ASSET.
Jag Bhushan Sharma
(Expert)
10 December 2009
It is capital expenditure because the office must have been shifted to make the business more profitable. So all expenditure on dismantling, transporting and reerecting capital assets must be considered capital expenditure. Case reference is given below:
[1963] 49 ITR 160 (SC)
SUPREME COURT OF INDIA
Sitalpur Sugar Works Ltd.
v.
Commissioner of Income-tax
S.K. DAS, A.K. SARKAR AND M. HIDAYATULLAH, JJ.
CIVIL APPEAL NO. 350 OF 1962
APRIL 10, 1963
[1963] 49 ITR 160 (SC)
SUPREME COURT OF INDIA
Sitalpur Sugar Works Ltd.
v.
Commissioner of Income-tax
S.K. DAS, A.K. SARKAR AND M. HIDAYATULLAH, JJ.
CIVIL APPEAL NO. 350 OF 1962
APRIL 10, 1963
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