Capitalization of Construction cost of Road

This query is : Resolved

Dilip Gupta (Querist)
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31 March 2009 Dear Friends,

A company has constructed a Road on Govt land outside his factory premises for easy convyence of vehicle.

The Question here is whether cost of construction of Road can be capitalized or not.
Further depreciation can be claimed or not.

If u will provide any supporting section or law or rulling if available.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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31 March 2009 Yes you can capitalize.

Their is a Similar Case Law, Can't able to Recall right now, but this is sure that it will be capitalize.

I believe Case Law is CIT Vs Udaipur Distillary Co. Ltd. (it was related to landscaping)