Answer would be capital expenditure.

Reasion :

First of all we have to know meaining of Capital expenditure.

Its features like, for long term purposes, getting benefit for more than 3 years , For generating Revenue, one time invest etc...

Shifting of business in more convienent locality includes above all features.. If New area having good traspotation facility that may save production expenditure. This is one of the examaple..

Think on it..& May you understand better!

AGREE WITH ABOVE                       

but i had attented the assessment test by icai in it i opt for capital exp but the ans it shows deff rev exp...so ly am confused.....

capital expenditure....see a similar query and a reply by an expert./experts/capital-expenditure-incurred-on-transfer-of-asset-292060.asp

@ harish

It can be possible becoz in capital expenditure and defffered revenue slite different between both.. As per explanation it matched also with deffered revenue.

Capital Expenditure....Bcoz its benefit endures for a longer period......

It will be a deferred revenue expenditure as deferred  revenue exp. are those for which payment has been made or a liability has been incurred on the presumption that it will be of benefit over a subsequent period or periods.

Also, capital expenditure are subject to depreciation and in the above case depreciation is not chargeable on the cost of shifting the business.. 

However, am not 100% sure.

Also shifting of business will not provide any capital asset so it cannot be a capital expenditure.. 

This expenditure cannot be called as Capital Exp. as there is no emergence of Capital Asset by this transaction.

Deferred Revenue Exp. is those exp. which is to be charged against Revenue to be earned in upcoming years in ratio of revenue of respective years.As exp. incurred on shifting of Business to a convenient locality is exp. whose benefit will get accrued in upcoming years,therefore assessment test of ICAI is correct in this regard.

Hoping,above explanation will clear your doubt.

Originally posted by : Pulkesh Mehta
	This expenditure cannot be called as Capital Exp. as there is no emergence of Capital Asset by this transaction. Deferred Revenue Exp. is those exp. which is to be charged against Revenue to be earned in upcoming years in ratio of revenue of respective years.As exp. incurred on shifting of Business to a convenient locality is exp. whose benefit will get accrued in upcoming years,therefore assessment test of ICAI is correct in this regard. Hoping,above explanation will clear your doubt.

Agree with pulkesh...............................
 

Akaksha  ur right

Shifting of business will not create any capital asset.

These expenses  incurred for the imporvement in sales

So these should be treated like Advertisement Expenses which will have life more then one year.

It is definitely going to be Capital Expenditure

Originally posted by : Pulkesh Mehta
	This expenditure cannot be called as Capital Exp. as there is no emergence of Capital Asset by this transaction. Deferred Revenue Exp. is those exp. which is to be charged against Revenue to be earned in upcoming years in ratio of revenue of respective years.As exp. incurred on shifting of Business to a convenient locality is exp. whose benefit will get accrued in upcoming years,therefore assessment test of ICAI is correct in this regard. Hoping,above explanation will clear your doubt.

VERY CORRECTLY SAID

Conclusion from the above discussion is that 'shifting to a better location is a deferred revenue expenditure.

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