There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): Profits or loss on revaluation of assets and liabilities is a capital profit. Reason (R): Capital profits are recurring in nature.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).  Assertion (A) is true but Reason (R) is False. Both Assertion (A) and Reason (R) are not correct.

Assertion (A) is true but Reason (R) is False.

Profit is capital and capital profit is nonrecurring in nature.