Capital Expenditure Vs Revenue Expenditure
Say a chef decides to open a restaurant and purchases a building that formerly housed offices. 2000 241 ITR 556 wherein it has been held as under- Whether on given set of facts replacement of certain items forming an integral or important part of the machinery would be revenue expenditure or capital expenditure is primarily a question of fact to be decided in the context of the business carried on by an. Difference Between Financial Statement Capital Expenditure Meant To Be Its counterpart a capital expenditure capex is the cost of developing or providing non-consumable parts for the product or system. . Condition for allowance under section 37 - Such expenditure should not be covered under the specific section ie. Therefore the repainting costs are part of the capital improvements and should be capitalized and depreciated as the same class of property that was restored as discussed above. However for revenue expenditure the operating expe