A Comapny has purchased costly paintings for the decoration of the office .can this be treated as fixed assets?but i think this doesnot fit into definition of the fixed assts.pls reply.
1 Replies
Dinesh
(Auditor)
(66 Points)
Replied 28 February 2009
Since these paintaings doesnt increase the life of building or furniture or whatever asset , its for sure that its not a fixed asset. However if u treat as revenue expenditure, the IT may raise a question for such costly paintaings (i supposed that these paintaings are of MF husssain and worth >1 crores) and may be disallowed u/s 37 of IT Act. Then u have to proove to the IT department these expenditure is related to the business.
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