Timeshare Membership fee taxable over the term of contract

Special Bench Tribunal Ruling: Entire amount of timeshare membership fee receivable by the assessee up-front should not be taxed at the time of enrollment of a member in the initial year on account of contractual obligation that is fastened to the receipt to provide services in future over the term of contract (ACIT Vs. Mahindra Holidays & Resorts (India) Pvt. Ltd.) Facts: Mahindra Holidays & Resorts (India) Pvt. Ltd. (the assessee/ company) is in the business of selling timeshare units in its various resorts. The assessment completed under section 143(3) of the Income tax Act (Act) wa...