Hello Agarwal Ji,
As per AS-26, definition of asset is given. As per AS 26, an asset can be recognized only if following two conditions are satisfied
1. an asset controlled by an enterprise generates future economic benefits and
2. The expenditure incurred on such asset can be measured reliably.
In the given case, expenditure of Rs.18000/- is measured relibly. Now if the 1st condition is satisfied, u may capitalize the expenditure, otherwise not.
However, as per Tax Laws and as opinied in various judicial pronouncements, any expenditure which is of capital nature can be capitalized if it is of enduring nature.
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