Tribunal denies depreciation claim on windmills, citing failure to meet WDV method requirements.

The Tribunal dismissed the assessee's appeals regarding the disallowance of depreciation on windmills at 80% on the WDV method for assessment years 2010-2011 and 2011-2012. The decision was based on the failure to exercise the option for claiming depreciation under the WDV method before the due date for the initial assessment year, as required by the relevant legal provisions and judicial precedents. The Tribunal did not explicitly address the validity of the reopening of assessment under Section 147 of the Income Tax Act in its judgment.

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Issues:
- Disallowance of depreciation on windmills on WDV Method for assessment years 2010-2011 and 2011-2012.
- Validity of reopening of assessment under section 147 of the Income Tax Act.

Analysis:
1. Depreciation Disallowance on Windmills on WDV Method:
- The assessee claimed depreciation on windmills at 80% on WDV method, contrary to the straight-line method at 7.69%.
- The Assessing Officer disallowed the claim and allowed depreciation at 7.69% for both assessment years.
- The assessee argued that the return of income was filed within the due date, making the claim valid under the WDV method.
- The Commissioner of Income Tax (Appeals) upheld the disallowance, stating that since windmills were first installed in 2008-2009, subsequent years' depreciation should be on the SLM basis.
- The Tribunal reviewed the legal provisions under Section 32(1)(i) of the Income Tax Act and Rule 5(1A) of the Income Tax Rules.
- It was noted that the assessee did not exercise the option for claiming depreciation under the WDV method before the due date for the assessment year 2009-2010.
- Relying on the decision in CIT vs. Kikani Exports P. Ltd, the Tribunal held that once the option is exercised, it applies to subsequent years, and separate intimation is not required.
- As the assessee did not exercise the option in the first year, the subsequent years' depreciation could not be claimed under the WDV method.
- The Tribunal dismissed the appeals, upholding the disallowance of depreciation on windmills at 80% for the assessment years in question.

2. Validity of Reopening of Assessment under Section 147:
- The assessee challenged the validity of the reopening of assessment under Section 147 of the Income Tax Act.
- The Tribunal did not address this issue explicitly in the judgment, focusing primarily on the depreciation claim on windmills.

In conclusion, the Tribunal dismissed the assessee's appeals regarding the disallowance of depreciation on windmills at 80% on the WDV method for the assessment years 2010-2011 and 2011-2012. The decision was based on the failure to exercise the option for claiming depreciation under the WDV method before the due date for the initial assessment year, as required by the relevant legal provisions and judicial precedents.

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