High Court grants condonation of delay, affirms ITAT decision on income deletion, upholds Project Completion Method.

The High Court allowed the application for condonation of delay in filing the appeal, citing sufficient cause for the delay. Regarding the deletion of income from the sale of development right, the Court affirmed the Income Tax Appellate Tribunal's decision, noting that no substantial question of law arose for consideration. The Tribunal's recognition of the Project Completion Method followed by the Assessee was upheld, with the High Court dismissing the appeal accordingly.

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Issues:
1. Condonation of delay in filing the appeal.
2. Whether the Income Tax Appellate Tribunal erred in deleting income from the sale of development right.
3. Whether the Project Completion Method followed by the Assessee was correct.

Condonation of Delay:
The High Court considered the delay of 236 days in filing the appeal and perused the affidavit filed in support of the application for condonation of delay. The Court found sufficient cause for the delay and allowed the application, condoning the delay in filing the appeal.

Deletion of Income from Sale of Development Right:
The appeal was filed by the revenue against the order of the Income Tax Appellate Tribunal regarding the deletion of income from the sale of development right. The tribunal noted that the assessing officer failed to dispute the claim of the assessee that the amount was not actually received during the relevant previous year. The tribunal observed that the assessee followed the Project Completion Method, and the income in question accrued in a different assessment year. The tribunal examined the agreement with the promoter and conditions imposed, concluding that no substantial question of law arose for consideration. Consequently, the appeal was dismissed.

Project Completion Method:
The tribunal recognized that the income from the project accrued to the assessee in a different assessment year when the project was completed. The tribunal re-examined the agreement with the promoter and the conditions imposed therein. It was noted that the income had already been taxed in a subsequent assessment year based on the Project Completion Method. The High Court found no substantial question of law in this regard and dismissed the appeal.

In conclusion, the High Court dismissed the appeal as no substantial question of law arose for consideration, affirming the tribunal's decision regarding the deletion of income from the sale of development right and the correctness of the Project Completion Method followed by the Assessee.

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