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2019 (1) TMI 197 - ITAT MUMBAIAddition on account of alleged House Property income at accrual basis - the possession of the property was given to the lessee in which it started carrying out the structural changes - Held that:- Proposed lessee had treated the amount of ₹ 2.10 crores given to the proposed lessor during the impugned period as "advance" and that AO during last year in scrutiny assessment accepted the claim of the assessee that the amount received was only an "advance" and did not form taxable income. AO also did not consider the fact that only advance of ₹ 2.10 crores has been received during the impugned period and no further advance was received after 30.06.2012. The AO did not take into consideration the confirmation given by the proposed lessee that amount given pending compliance of conditions precedent (obtaining of approval from MOEF and later OC from MCGM) has been treated in its (lessee) books of accounts as "advance". As conditions precedent have not been complied with, so nothing has become due to the proposed lessor. In this background, finding of the AO that amount of compensation / advance/ revised advance was due to the lessor at the rate of ₹ 4.20 crores per quarter is not tenable. The addition made by AO on selective reading of the proposed lease agreement was not justified. The detailed finding so recorded by CIT(A) are as per material on record which do not require any interference on our part. Furthermore the finding so recorded are supported by our above observation, which has not been controverted by bringing any positive material on record. - Decided against revenue
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