Timeshare membership fee is taxable only over the term of contract

ACIT Vs. Mahindra Holidays & Resorts (ITAT Chennai Special Bench) The assessee, a time-share company having resorts at tourist places granted membership for a period of 33/25 years on payment of certain amount. During the currency of the membership, the member had the right to holiday for one week in a year at the place of his choice from amongst the resorts of the assessee. The membership fee was received either in lump sum or in instalments to the prospective member. In addition to the membership fee, the member was liable to pay maintenance charges or subscription fees irrespective of w...