Depreciation

Dear friends,

A public limited company is having at its factory site , staff colony also where children park is also constructed. In this park various Playing equipments for staff children such as Sea Saw, Swing, slide etc have been installed. The company shall be capitalizing these equipments in its books of accounts and shall be claiming the depreciation u/s 32 of the Income Tax Act.

Whether expenses incurred on above can be debited to staff welfare expenses and may be claimed as revenue expenditure under IT Act.

Members are requested to share their views that under which block of assets these shall be capitalized and how much depreciation shall be admissible to the company on these items or alternatively its allowability as staff welfare expenses.

Members are requested to kindly share the decided case law, circular, notification etc. which support their views.

With best regards,