No, sorry, that is incorrect. The definition of "occupation" makes no mention at all regarding the sovereignty of the territory being occupied. It's only condition is this: "Territory is considered occupied when it is actually placed under the authority of the hostile army." That's exactly what the IDF did in June 1967, and so this territory has been INDISPUTABLY occupied by Israel since then.
Shaffir to Herzog: Opposition failed to show leadership in political battles against PM (Haaretz)