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2023 (5) TMI 66 - ITAT PUNEIncome from house property or income from other sources - correct head of income - receipt of compensation for non-occupancy - HELD THAT:- The facts of the present case and facts in the case of Datar & Co., [1999 (6) TMI 66 - ITAT PUNE] and Rama Leasing Company [2007 (10) TMI 440 - ITAT MUMBAI] are identical. In all these cases assessee had received compensation for pre-mature termination of the lease. ITAT has held that the compensation received by the assessee assumes the nature of income from House Property; however, it is not chargeable to tax as only Annual value of the property can be assessed under the head Income from House property. In the case under consideration the “Compensation and security deposit forfeiture” have roots in the Leave and License Agreement pertaining to the impugned property. The “Compensation and security deposit forfeiture” are emanating from the Leave & License Agreement and they are specifically mentioned in the said Leave &License Agreement. As observed by the ITAT in the case of Datar & Co [1999 (6) TMI 66 - ITAT PUNE] the compensation partakes the character of Income from House Property. Therefore, when any receipt falls under a specific Head, but the same cannot be computed under that head, then it cannot be assessed as income of the assessee under any other head - we hold that the amount is not taxable as income from other sources. Accordingly, the AO is directed to delete the said amount. Decided in favour of assessee.
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