Capital expenditure

Its capital expenditure..because it will form part of Block of computers

As per AS-10 thae expenditure can only be capitalised when the expenditure increases the life of the asset beyond the life of asset

beyond the life of the asset: Life of asset means the expected life of asset when we bought the asset,

for example:we bought asset on 1st april 2000 we expected that asset life as 5 years

then in 2003 we met some expenditure on the afforesaid asset the expenditure increases the life of asset(that means beyond 5 years from the date on which expenditure is incurred) otherwise treat it as revenue expenditure.

Hi Ramcharan, I think the priciple allows to capitalize the expenditure when it increase the efficiency of fixed asset as well (Not only Life).

Yes exactly I missed out that point in my reply, that too when it increases beyond the instaalled capacity

and thank you Mr.Bhasker