Capitalisation of construction expenses

If i capitalise then...can a company have its building without having its land...???

I need some more clarification on this topic....can anybody help me out...???

if client holds a lease or any other right of occupancy then such capital expenditure incurred by the assessee for the purpose of business or profession on construction of any structure or by way of renovation or extension or improvement to the building, then such capital expenditure is treated as building owned by assessee and depreciation can be claimed as per explanation 1 to Section 32(1) also known as deemed building.

i hope your query is cleared now...

but my client who is a private limited company, don't hold any rights on land. Land is owned by directors. Also what steps to be taken to regularise this transaction so that company can capitalise these expenses. 

You shall prepare one document explaining that company will construct business premises on such land. Show Open new ledger "CONSTRUCTION" under fixed assets. Capitalised exps. under this head. When land transferred in company 's name than show land under fixed assets with purchase cost.