Determination of cost of asset

pavan kumar (Student CA IPC / IPCC) (32 Points)

20 February 2016  

Suppose if the Cost of Asset is 1,00,000

Installations charges is 10,000

Frieght Charges is 10,000

The cost of Asset we capitalise is 1,20,000

Question is ,If there is any section said that the amount 1,20,000 is to be capitalized in Income Tax 1961..?