Capital or revenue exp

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we have purchased a dg set of rs 50 lakhs which is a part of big machine. this dg set can be used only with the machine and not without the machine, its a part of machine.

whether it will be capital expenditure or revenue expenditure. kindly share supreme court judgement, if any.

Replies (3)
The DG set is a capital nature...
DG set itself is a machine (fixed assets) under Plant & Machinery.

It's a capital expenditure and on which you are entitled to claim depreciation every year.
DG IS A capital asset .
It should be booked under Fixed Asset.
To get a more concise idea refer
Schedule 111 OF COMPANIES ACT.


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