Why capital expenditure is not allowed as deduction?

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Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2013 Hi Everyone...Could you please answer my query with an example.
Why Capital Expenditure is not allowed as deduction under PGBP?(Sec 30 & 31).

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 September 2013 capital expenditure provides benefit for more than one year. Accordingly, instead of providing full deduction in the year of expenditure, the allowance is made in form of depreciation over useful life of capital expenditure.

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Ashwani Narnoli

Ashwani Narnoli (Expert)
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29 September 2013 Agree with expert

CA Pallav Singhania

CA Pallav Singhania (Expert)
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29 September 2013 One of the principles underlying the tax rules for deductions is that your income for the year should only be offset by those expenses that contributed to earning that income.
Expenses to acquire or improve a business asset that will last longer than a year are not deductible as business expenses.

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