Treating purchase of asset as an expense

This discussion explores whether a business can treat the purchase of a fixed asset, like a laptop, as an immediate expense. It clarifies that capital expenses, including fixed assets, are not directly deductible under Section 37(1) of the Income-tax Act. Instead, businesses can claim depreciation on eligible assets as per Section 32, with specific exclusions like goodwill and freehold land. All capital assets must be capitalised, not expensed, as per Accounting Standard 10.