Plz answer my doubt asap..................

u may find answer here...

https://www.scribd.com/doc/63784369/PGBP-Notes

hope this will do the needful.

regards,

S. Singhi

With reference to Business and Profession -

all capital expenditures are disallowed unless otherwise provided

and

all revenue expenditures are allowed as deduction unless otherwise stated

thanks rahul but hw to differentiate that a particular expenditure is capital or revenue?

Capital expenditure includes costs incurred on the acquisition of a fixed asset and any subsequent expenditure that increases the earning capacity of an existing fixed asset.

Revenue expenditure incurred on fixed assets include costs that are aimed at 'maintaining' rather than enhancing the earning capacity of the assets

Because of incurring an expenditure, if you have following results then,

a) Capacity of the asset had changed

b) creation of additional advantages

c) Enhancing its efficiency beyond its orginal efficiency  

d) Benfit in durable nature etc

Then such kind of expenditure will partake the character of capital expenditure.

All expenditure over and above will be treated as revenue expenditure.