Capital expenditure v/s revenue expenditure

In the given case Sec.35D has to be applied.The said exp has to be treated a Pre-operative expenses and claimed as per Sec35D

CAPITAL EXPENDITURE:-The nature of this expenditure is Non-
Recurring.

This expenditure should give long term benefit to the 
organization.

EX:-Expenditure on acquisition of fixed assets, Expansions 
of business. E.tc.

Revenue Expenditure:-Recurring in nature.

EX:-Petrol to a van.

Expenditure which are capital in nature and are exhausted 
over the life time of the asset are capitalised to the cost 
of the asset.

Revenue expenditure are those expenditure the effect of 
which are felt immeditaely like expentire incurred for 
salary.

Deffered Revenue expenditure are those which are revenue in 
nature but the effect of which are felt over the period of 
2 to 3 years.

The above said expenditure should be treated as Pre-operative                expenses.