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2015 (8) TMI 231 - HC - Income TaxAccrual of income - Receipt on account of membership fees - giving the services of the water park to its members - commencement of commercial activities - Held that:- Tribunal has committed an error in passing the impugned order so far as considering the membership fees as income when the assessee had not resumed giving the services of the water park to its members. Under such circumstances, the amount received by way of membership fees was required to be considered as an advance and thereafter as and when the business commenced the amount of liability was required to be taxed over a period of time proportionately. The amount of membership fees would be considered as income from the year the business of the assessee commenced. See Commissioner of Income-tax vs. Bilahari Investment P. Ltd reported in [2008 (2) TMI 23 - SUPREME COURT] and in the Commissioner of Income Tax vs. Excel Industries Ltd & Mafatlal Industries P. Ltd reported in [2013 (10) TMI 324 - SUPREME COURT]. - Decided against the revenue and in favour of the assessee.
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