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 busine

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