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2019 (3) TMI 737 - ITAT MUMBAIHouse property income - accrual of income - compensation amount payable to the assessee till the ‘Rent commencement date’ - assessee had entered into a lease agreement - DR argued that the compensation shall take the character of rental income - “rent commencement date”, which is determined as the next date to the day when the approval from Ministry of Environment & Forests (MOEF) and Occupancy Certificate (OC) from Municipal Corporation of Greater Mumbai (MCGM) are received - HELD THAT:- The compensation amount so paid shall be kept as ‘advance’ towards the compensation until the procurement of the said OC by the Lessor. These aspects were made clear further in clause 5.6 of the Supplementary Agreement, wherein it is stated that the payments made towards compensation as advance shall be treated and appropriated by the lessor as compensation from lessee for occupation of the property only upon procurement of the OC from MCGM. The assessee has not received approval from MOEF and OC from MCGM during the year under consideration. Further, during the year under consideration, the assessee has also not received any payment towards the compensation also. Hence we are of the view that the compensation amount or lease amount has not accrued to the assessee during the year under consideration, since the accrual of the same would depend upon the receipt of approvals referred above. Hence the ratio of the order passed by the Co-ordinate Bench in AY. 2013-14 in the assessee’s own case [2019 (1) TMI 197 - ITAT MUMBAI] shall continue to apply during the year under consideration also. Accordingly, we are of the view that the order passed by the Ld. CIT(A) does not call for any interference. - Decided against revenue.
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