Condonation of delay in filing GSTR-3B returns and entitlement to Section 62 benefit results in withdrawal of assessments and revocation of attachment...
Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Under the mercantile system, a continuing obligation to provide promised facilities and amenities over a long-term timeshare membership period gave rise to an accrued, estimable liability, so proportionate revenue recognition was permissible. The Court held that the concept of deferred income is not alien to the Income-tax Act and applied the matching principle to the assessee's advance membership collections. Annual maintenance or utility charges collected separately were not equivalent to the contractual facilities promised under the membership arrangement. The Tribunal erred in taxing the entire membership receipt in the first year, and the substantial questions of law were answered in favour of the assessee.
Under the mercantile system, a continuing obligation to provide promised facilities and amenities over a long-term timeshare membership period gave rise to an accrued, estimable liability, so proportionate revenue recognition was permissible. The Court held that the concept of deferred income is not alien to the Income-tax Act and applied the matching principle to the assessee's advance membership collections. Annual maintenance or utility charges collected separately were not equivalent to the contractual facilities promised under the membership arrangement. The Tribunal erred in taxing the entire membership receipt in the first year, and the substantial questions of law were answered in favour of the assessee.
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