Treating purchase of asset as an expense

Section 37(1) of the Income-tax Act does not allow dleduction of capital expense. Since fixed asset falls under capital expense, the same is not a deductible item. However, in terms of section 32, depreciation on such asset may be claimed. You need to check whether the asset is a depreciable asset or not (for eg., depreciation is not available on goodwill, freehold land etc.)