The amount spent on increasing the seating capacity in a cinema hall would generally be considered a **capital expenditure**.

Here`s why:

Capital expenditures are expenses incurred to acquire, improve, or extend the life of an asset. Increasing the seating capacity in a cinema hall involves significant construction or renovation work, which typically enhances the cinema hall as a long-term asset of the business. These expenditures are not consumed immediately but are expected to provide benefits over multiple accounting periods. Therefore, they are treated as capital expenditures.

In contrast, revenue expenditures are generally incurred for the day-to-day operations of the business to maintain current operations and are expensed in the period they are incurred. Examples of revenue expenditures in the context of a cinema hall might include routine maintenance costs, cleaning expenses, or advertising costs for current showings.

To summarize, the amount spent on increasing the seating capacity in a cinema hall is classified as a **capital expenditure** because it involves improving a long-term asset (the cinema hall) rather than being a day-to-day operating expense.