Capitalisation of expense determines ITC eligibility: accounting treatment in books decides whether goods are capital goods or inputs. Capitalisation for ITC denial depends on accounting treatment: items capitalised in the claimant's books are treated as capital goods and may be subject to ITC restriction, whereas stores, spares and similar items charged to revenue are not capital goods and ITC on them cannot be denied provided they are used for business or taxable supplies. Administrative guidance confirms that the distinction between inputs and capital goods is governed by whether the value has been capitalised in the books, so invoice and accounting treatment determine ITC eligibility for repair and renovation expenses.