The assessee recognised only the proportionate time-share membership income in the year in which the member became entitled to holiday facilities and spread the balance over the membership period. Following its earlier decisions in the assessee’s own case, the Tribunal held that the consistently followed method of revenue recognition was proper and that the entire membership fee could not be taxed in the year of receipt. (AY. 2018-19).
Sterling Holiday Resorts Ltd. v. Dy. CIT (2025) 127 ITR 284 / 180 taxmann.com 310 (Mum.)(Trib.)
S. 4: Charge of income-tax-Income-Time-share membership fees-Consistent method of recognising income over membership period-Entire receipts not taxable in year of receipt.[S. 145]
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