Exp incurred on furniture......

Dear Sir,

First whether any will be capitalised or not depends upon the nature of work done & the quatum is not the criteria to determine.

 Quantum of expenditure is not decisive to find whether repairs to machinery are capital or revenue - It cannot be taken as a matter of assumption that merely because a large sum is expended on repairs to machinery it must necessarily amount to reconstruction making the expenditure capital in nature - C.R. Corera & Bros. v. CIT

Second, the above expenditure cant be capitalized in the Books of the Company (since for company it is a one time expenditure which will not give any future benefit)

Now the main issue whether it can be claimed as deduction by the company or not - It may go unnoticed if remains burried under other expenses but once detected then AO will surely raise doubt if not directly then under 40A(2)(b) further I don't see any big purpose being achieved by doing this unless it involves any losses to be setoff since the amount of expenditure will form part of the salary & taxable in the hands of Director as a peruisite.