Capital or revenue?

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Guest (Querist)

29 August 2011 if a director purcahse a machinery out side of india traveling expense called capital expenditure........and my ouestion is if a director purchase a machinery out side of india but he is not able to purchase machine due to not a good quality etc....e when travelling expense called...revenue or capital?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 August 2011 We can put it in different manner that the director travelling aboard for inspection of machinery to be purchased by the company but finally he could not select the machinery and the trip was not fruitful. Now, one thing to be noted that what was the offer for inspection of machinery and was it need by the company at all? If Yes, then it is a revenue expenses. Burt if it is found later on that the director has just gone to abroad for site seeing and for no business then the ITO will disallow.

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Guest

Guest (Querist)

29 August 2011 thnks sir ..this question put my (aoc delhi)faculty but he could not answered giving my question!! thanks a lot sir!!!

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