A company had incurred exp on building sub station & laying transmission lines for supply of electricity to its manufacturing plant, however as per the arrangement with state elec auth, the ownership of sub station & transmission line would belong to them.
Query- Whether the expenditure incurred on sub station & transmission line should be capitalized or not, Since the Guidance note This is w.r.t Guidance note- Treatment of Capital Expenditure during construction Period- has been withdrawn , according to which the exp could be capitalized & w/o over a period not exceeding 5 yrs.
Or should it be treated as Intangible asset(right to use) & capitalized?
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