This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Madras HC Allows Time-Share Membership Fees to Be Spread Over Contract Period
Case Law Details
- Case Name
- CIT-LTU Vs Mahindra Holidays and Resorts (India) Ltd. (Madras High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2002-03
- Courts
- All High Courts, Madras High Court
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Advertisement
CIT-LTU Vs Mahindra Holidays and Resorts (India) Ltd. (Madras High Court)
Conclusion: Time-share membership fees received upfront were not fully taxable under the Income Tax Act in the same year as it was intrinsically linked with continuing contractual obligations to provide accommodation and related facilities throughout the membership period and it can be spread over the contract period because services are given for many years.
Held: Assessee-company was engaged in the business of time-share hospitality services, collected membership fees from customers for granting holida...
Author Info
