Does renovation cost are capital expenditure ??

As per AS 10, the cost of property, plant and equipment of a business entity may include the:

• initial cost to acquire or construct an item of property, plant and equipment
• Subsequent costs of adding, replacing or servicing the property, plant and equipment so acquired

 Some of the Case law .

1) Expenses for Renovation and Redecoration of  Hotel  Rooms , Constitute  Revenue Expenditure  - Honorable    Madras High- Court in case of Pandian Hotels .

2) Repair  or  Renovation  expenditure on Make up rooms is revenue expenditure , Maharashtra Film culture Development  Corporation  Vs JCIT - Honorable High court judgement  

some more case laws wherein honorable court  has decided  as Renovation  expenditure  is  Revenue in nature . 

In  my opinion , Renovation Expenditure may be Capital Expenditure , however  in Certain cases  it may not  if you refer above case laws .

  Respected  Madam , but in query it is not clear for what  purpose  they have incurred  Renovation  Expenditure .