Capital or revenue expenditure

Sanjeev Parasrampuria (B.Com CA Final CS Final)   (273 Points)

29 November 2012  

Dear All,

Raymond Textile Mills Pvt. Ltd. incurred Rs.2 Crore for intallation a Plant for protecting the health of worker from dust, which have useful life of 3 year.

         Whether it is Capital Expenditure or not? If yes then why?