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2010 (10) TMI 717 - AT - Income TaxRevenue Recognition - AS 9 - capital contribution of this year as well as the next four years as income of the appellant -Regarding membership fees - Held that:- a clear right is given by the assessee-company to the members to utilise its capital facilities for a period of 99 years for discharge of agreed quantities of effluent. - Thus the one-time membership fee is not in fact in return for any obligation or services rendered by the assessee in one year. It is a receipt in advance for an obligation to be rendered in future. Thus it cannot be said that income has actually accrued to the assessee in one year even though it might have received it in one year. Mere receipt does not ensure accrual unless an equivalent part of the agreed services by the receiver is rendered. - Following the above decision of the Special Bench in the case of Asst. CIT v. Mahindra Holidays and Resorts (India) Ltd. (2010 -TMI - 203965 - ITAT, CHENNAI) we hold that the assessee was justified in deferring the revenue for taxation for four years. Accordingly this ground of the assessee is allowed.
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