DCIT, CHENNAI V. Mahindra Holidays & Resorts (P) Ltd., CHENNAI

ITA 62/CHNY/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2683 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 08-03-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 12-01-2016
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , ! . ' #$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G.PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO.62 /MDS./2016 ( / ASSESSMENT YEAR :2004-05) DEPUTY COMMISSIONER OF INCOME TAX, LARGE TAXPAYER UNIT-1, CHENNAI 600 034. VS. M/S.MAHINDRA HOLDIAY & RESORTS (P) LTD., MAHINDRA TOWERS, 2 ND FLOOR, 17/18,PATULLOS ROAD, CHENNAI 600 002. PAN AAACM 6469 L ( %& / APPELLANT ) ( '(%& / RESPONDENT ) / APPELLANT BY : MRS.VIJAYALAKSHMI,CIT DEPARTMENTAL REPRESENTATIVE / RESPONDENT BY : MR.SAROJ KUMAR PARIDA, ADVOCATE / DATE OF HEARING : 08.03.2016 !' /DATE OF PRONOUNCEMENT : 16.03.2016 ITA NO.62/MDS/2016 2 ) / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE IS DIRECTED A GAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-8, CHE NNAI DATED 19.10.2015 PERTAINING TO THE ASSESSMENT YEAR 2004-0 5 . 2. THE GRIEVANCE OF THE REVENUE RAISED IN ITS GROU NDS IS WITH REGARD TO DELETION OF ADDITION OF ` 2,33,13,21,292/- MADE TOWARDS ADVANCE MEMBERSHIP FEE BY TAKING THE STAND THAT THE MEMBERSHIP FEE HAS TO BE SPREAD OVER THE ENSUING YEARS. 3. AFTER HEARING BOTH THE SIDES, WE ARE OF THE OPI NION THAT SIMILAR ISSUE WAS CONSIDERED BY THIS TRIBUNAL IN ASSESSEE'S OWN CASE BY SPECIAL BENCH, CHENNAI REPORTED IN 131 TTJ 1 (SB)(C HENNAI) WHEREIN HELD THAT THE ENTIRE AMOUNT OF TIME-SHARE MEMBERSHIP FEE RECEIVABLE BY THE ASSESSEE UPFRONT AT THE TIME OF E NROLMENT OF A MEMBER CANNOT BE CHARGED TO TAX IN THE INITIAL YEA R ON ACCOUNT OF CONTRACTUAL OBLIGATION THAT IS FASTENED TO THE RECE IPT TO PROVIDE SERVICES IN FUTURE OVER THE TERM OF CONTRACT; IT HA S TO BE SPREAD OVER ITA NO.62/MDS/2016 3 THE ENSURING YEARS. IN VIEW OF THE ABOVE ORDER OF T HE TRIBUNAL, WE ARE INCLINED TO DISMISS THE APPEAL OF REVENUE. 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED ON WEDNESDAY, THE 16 TH OF MARCH,2016 AT CHENNAI. SD/- SD/- ( . ) (G.PAVAN KUMAR) ( ( #$ % ) ) & CHANDRA POOJARI '( JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 16 TH MARCH,2016. K S SUNDARAM. )*((+,(-, /COPY TO: ( 1. /APPELLANT 2. /RESPONDENT 3. ( .(&' /CIT(A) 4. ( . /CIT 5. ,/0 (1 /DR 6. 02(3 /GF