Tribunal held that the entrance fee and membership fees received by the assessee should be accounted for as income only when they accrued to the assessee. Merely because the income, which pertained to subsequent years, was received by the assessee in earlier years it did not become the income of the earlier years under section 5 of the Income-tax Act, 1961 in the case of either business income or under section 28 . Hence, the membership fee income of the assessee was chargeable to tax in the year to which it pertained. ( AY.2013-14, 2014-15, 2016-17)
Landbase India Ltd. v. ACIT (2020) 80 ITR 580 / 185 ITD 40/ 116 taxmann.co 574 ( Delhi) (Trib)
S. 5 : Scope of total income – Accrual – Membership fees —Mercantile system of accounting -Pertaining to subsequent years —Taxable in year to which it pertains. [ S. 28(i) ,145 ]