https://www.taxtmi.com/caselaws?id=790981 Upfront membership fees under a time-share arrangement may be deferred and recognised over the contract period where the receipt is tied to a continuing enforceable obligation to provide accommodation and use of resort facilities. Applying the matching principle, real income concept, and commercial accounting, the fee was treated as linked to future performance rather than as a mere entrance charge. Separate recovery of maintenance and utility charges did not change the character of the membership fee, and accounting standards together with later statutory recognition supported deferred revenue treatment. The Madras HC therefore upheld recognition of the fee over the relevant period and rejected taxation of the entire amount in the year of receipt. en-us Tue, 28 Apr 2026 00:00:00 +0530 Mon, 04 May 2026 11:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790981 Upfront membership fees under a time-share arrangement may be deferred and recognised over the contract period where the receipt is tied to a continuing enforceable obligation to provide accommodation and use of resort facilities. Applying the matching principle, real income concept, and commercial accounting, the fee was treated as linked to future performance rather than as a mere entrance charge. Separate recovery of maintenance and utility charges did not change the character of the membership fee, and accounting standards together with later statutory recognition supported deferred revenue treatment. The Madras HC therefore upheld recognition of the fee over the relevant period and rejected taxation of the entire amount in the year of receipt. Case-Laws Income Tax Tue, 28 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790981