Income-tax Act,1961
Act No : 43
Section :
ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER TO COUNTER ACT EVASION OF TAX
1[CHAPTER XXA ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER TO COUNTERACT EVASION OF TAX 269A. Definitions In this Chapter, unless the context otherwise requires,- (a) 2["apparent consideration",- (1) in relation to any immovable property transferred, being immovable property of the nature referred to in sub- clause (i) of clause (e), means,--] (i) if the transfer is by way of sale, the consideration for such transfer as specified in the instrument of transfer; (ii) if the transfer is by way of exchange,- (A) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer; (B) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer and such sum; 3[(iii) if the transfer is by way of lease,- (A) in a case where the consideration for the transfer consists of premium only, the amount of premium as specified in the instrument of transfer; (B) in a case where the consideration for the transfer consists of rent only, the aggregate of the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer; (C) in a case where the consideration for the transfer consists of premium and rent, the aggregate of the amount of the premium, the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer, ---------------------------------------------------------------------- 1 Chapter XXA, consisting of sections 269A to 269S was inserted by the Taxation Laws (Amendment) Act, 1972, w.e.f. 15-11-1972. It ceased to operate in respect of transfer of immovable property made after 30-9-1986 (see section 269RR) but simultaneously a new Chapter XX-C was inserted. 2 Substituted for "apparent consideration", in relation to any immovable property transferred, means,-' by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. 3 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7- 1982. ---------------------------------------------------------------------- 1.735 and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such transfer the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such transfer, determined by adopting the rate of interest at eight per cent per annum; (2) in relation to any immovable property transferred, being immovable property of the nature referred to in sub- clause (ii) of clause (e) means,- (i) in a case where the consideration for the transfer consists of a sum of money only, such sum; (ii) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date of the transfer; (iii) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date of the transfer and such sum, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on. the date of such transfer determined by adopting the rate of interest at eight per cent per annum;] (b) "competent authority" means 1[a Deputy Commissioner] authorised by the Central Government under section 269B to perform the functions of a competent authority under this Chapter; (c) "court" means a principal civil court of original jurisdiction unless the Central Government has appointed (as it is hereby authorised to do) any special judicial officer within any specified local limits to perform the functions of the court under this Chapter; 2[(d) "fair market value",- (i) in relation to any immovable property transferred by way of sale or exchange, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the price that the immovable property would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer of such property; ---------------------------------------------------------------------- 1 Substituted for "an Assistant Commissioner of Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 2 Substituted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7- 1982. Prior to the substitution, it read as under: "(d) "fair market value" in relation to any immovable property transferred means the price that the immovable property would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer of such property;" ----------------------------------------------------------------------- 1.736 (ii) in relation to any immovable property transferred by way of lease, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the premium that such transfer would ordinarily fetch in the open market on the date of execution of the instrument of transfer of such property, if the consideration for such transfer had been by way of premium only; (iii) in relation to any immovable property transferred, being immovable property of the nature refer-red to in sub- clause (ii) of clause (e), means the consideration in the form of money that such transfer would ordinarily fetch in the open market on the date of the transfer, if such transfer had been made only for consideration in money;] (e) 1["immovable property" means,- (i) any land or any building] or part of a building, and includes, where any land or any building or part of a building is transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture, fittings or other things also. Explanation.-For the purposes of this 2[sub-clause], land, building, part of a building, machinery, plant, furniture, fittings and other things include any rights therein; 3[(ii) any rights of the nature referred to in clause (b) of sub-section (1) of section 269AB;] 4[(f) "instrument of transfer" means the instrument of transfer registered under the Registration Act, 1908 5 (16 of 1908), or, as the case may be, the statement registered under section 269AB with the competent authority;] (g) "person interested", in relation to any immovable property, includes all persons claiming, or entitled to claim, an interest in the compensation Payable on account of the acquisition of that property under this Chapter; 6[(h) "transfer",- (i) in relation to any immovable property referred to in sub-clause (i)of clause (e), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the ----------------------------------------------------------------------- 1 Substituted for "immovable property" means any land or any building' by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. 2 Substituted for "clause", by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. 3 Inserted, ibid. 4 Substituted, ibid. Prior to the substitution, clause (f) read as under: "(f) "instrument of transfer" means the instrument of transfer registered under the Registration Act, 1908 . 6 Substituted, ibid. Prior to the substitution, clause (h) read as under: "(h) "transfer", in relation to any immovable property, means transfer of such property by way of sale or exchange." ----------------------------------------------------------------------- 1.737 nature referred to in section 53A of the Transfer of Property Act, 1882 1 (4 of 1882). Explanation.-For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years if the aggregate of the term for which such lease has been granted and the further term or terms for which it can be so extended is not less than twelve years; (it') in relation to any immovable property of the nature refer-red to in sub-clause (ii) of clause (e), means the doing of anything (whether by way of transfer of shares in a co-operative society or company or by way of any agreement or arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of such property.] 2[269AB. Registration of certain transactions (1) The following transactions, that is to say,- (a) every transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 18823 (4 of 1882), and (b) every transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement of whatever nature) whereby a person acquires any rights in or with respect to any building or part of a building (whether or not including any machinery, plant, furniture, fittings or other things therein) which has been constructed or which is to be constructed [not being a transaction by way of sale, exchange or lease of such building or part of a building which is required to be registered under the Registration Act, 19084 (16 of 1908)], shall be reduced to writing in the form of a statement by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties. 5(2) Every statement in respect of a transaction referred to in subsection (1) shall- (a) be in the prescribed form; (b) set forth such particulars as may be prescribed; and (c) be verified in the prescribed manner, and registered with the competent authority, in such manner and within such time as may be prescribed, by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other par-ties.] ---------------------------------------------------------------------- 2 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7- 1982. 4 lbid ------------------------------------------------------------------------ 1.738 1 269B. Competent authority (1) The Central Government may, by general or special order' published in the Official Gazette,- (a) authorise as many 3[Deputy Commissioners] as it thinks fit, to perform the functions of a competent authority under this Chapter; and (b) define the local limits within which the competent authorities shall perform their functions under this Chapter. (2) In respect of any function to be performed by a competent authority under any provision of this Chapter in relation to any immovable property referred to in section 269C, the competent authority referred to therein shall,- (a) in a case where such property is situate within the local limits of the jurisdiction of only one competent authority, be such competent authority; (b) in a case where such property is situate within the local limits of the jurisdiction of two or more competent authorities, be the competent authority empowered to perform such functions in relation to such property in accordance with rules made in this behalf by the Board under section 295. 4[Explanation.-For the purposes of this sub-section, immovable property, being rights of the nature referred to in clause (b) of sub- section (1) of section 269AB in, or with respect to, any building or part of a building which has been constructed or which is to be constructed shall be deemed to be situate at the place where the building has been constructed or is to be constructed.] (3) No person shall be entitled to call in question the jurisdiction of a competent authority in respect of any immovable property after the expiry of thirty days from the date on which such competent authority initiates proceedings under section 269D for the acquisition of such property. (4) Subject to the provisions of sub-section (3), where the jurisdiction of a competent authority is questioned, the competent authority shall, if satisfied with the correctness of the claim, by order in writing, determine the question accordingly and if he is not so satisfied, he shall refer the question to the Board and the Board shall, by order in writing, determine the question. 269C. Immovable property in respect of which proceedings for acquisition may be taken' (1) Where the competent authority has reason to believe that any --------------------------------------------------------------------- 3 Substituted for "Assistant Commissioners of Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 4 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7- 1982. ---------------------------------------------------------------------- 1.739 immovable property of a fair market value exceeding 1[one hundred] thousand rupees has been transferred by a person (hereafter in this Chapter referred to as the transferor) to another person (hereafter in this Chapter referred to as the transferee) for an apparent consideration which is less than the fair market value of the property and that the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer with the object of- (a) facilitating the reduction or evasion of the liability of the transferor to pay tax under this Act in respect of any income arising from the transfer; or (b) facilitating the concealment of any income or any moneys or other assets which have not been or which ought to be disclosed by the transferee for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act or the Wealth- tax Act, 1957 (27 of 1957), the competent authority may, subject to the provisions of this Chapter, initiate proceedings for the acquisition of such property under this Chapter: Provided that before initiating such proceedings, the competent authority shall record his reasons for doing so: Provided further that no such proceedings shall be initiated unless the competent authority has reason to believe that the fair market value of the property exceeds the apparent consideration therefor by more than fifteen per cent of such apparent consideration. (2) In any proceedings under this Chapter in respect of any immovable property,- (a) where the fair market value of such property exceeds the apparent consideration therefor by more than twenty-five per cent of such apparent consideration, it shall be conclusive proof that the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer; (b) where the property has been transferred for an apparent consideration which is less than its fair market value, it shall be presumed, unless the contrary is proved, that the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer with such object as is referred to in clause (a) or clause (b) of sub-section (1). 2 269D. Preliminary notice (1) The competent authority shall initiate proceedings for the acquisition, under this Chapter, of any immovable property referred to in section 269C by notice to that effect published in the Official Gazette: Provided that no such proceedings shall be initiated in respect of any immovable property after the expiration of a period of 3[nine] months ---------------------------------------------------------------------- 1 Substituted for "twenty-five" by the Finance Act, 1984, w.e.f. 1-6- 1984. 3 Substituted for "six" by the Income-tax (Amendment) Act, 1973, w.r.e.f. 15-11-1972. Section 3 of the Amendment Act also made the following independent provision: "3. Validation.-(1) No notice for the initiation of proceedings for the acquisition of any immovable property under Chapter XXA of the principal Act which was -> -> ----------------------------------------------------------------------- 1.740 from the end of the month in which the instrument of transfer in respect of such property is registered under the Registration Act, 1908 1 (16 of 1908), 2[or, as the case may be, section 269AB]: Provided further that- (a) in a case where it is determined under sub-section (4) of section 269B by the competent authority who has initiated proceedings for the acquisition of any immovable property under this Chapter or by the Board that such competent authority has no jurisdiction to initiate such proceedings, the competent authority having jurisdiction may initiate such proceedings within- (i) the period of 3[nine] months specified in the foregoing proviso; or (ii) a period of thirty days from the date of such determination, whichever period expires later; (b) in a case where proceedings for the acquisition of any immovable property under this Chapter could not be initiated during any period of time by reason of any injunction or order of any court prohibiting the initiation of such proceedings or preventing the examination of documents or other materials required to be examined for' the purpose of determining whether such proceedings should be initiated, the time of the continuance of the injunction or order, the day on which it was issued or made and ---------------------------------------------------------------------- issued by the competent authority before the commencement of this Act for publication in the Official Gazette, in the exercise of or the purported exercise of the powers under section 269D of the principal Act, shall be called in question merely on the ground that such notice was not published in the Official Gazette before the expiration of a period of six months from the end of the month in which the instrument of transfer in respect of such property was registered under the Registration Act, 1908 (16 of 1908), if such notice was either published in the Official Gazette before the expiration of a period of nine months from the end of the month in which the instrument of transfer in respect of such property was registered under the Registration Act, 1908, or could not be so published within the said period of nine months by reason of any injunction or order of any court. (2) Every notice, which by virtue of the provisions of sub- section (1) shall not be called in question as provided therein, shall be deemed to have been issued in accordance with law and shall, for the purposes of sub-section (1) of section 269D of the principal Act, be deemed to have operated or, where such notice is published in the Official Gazette after the commencement of this Act, to operate. to initiate the proceedings for the acquisition of the immovable property to which such notice relates on the date of publication of such notice in the Official Gazette: Provided that- (a) the jurisdiction of a competent authority in respect of any such property may be called in question before the expiry of the period specified in sub-section (3)of section 269B of the principal Act or a period of thirty days from the commencement of this Act, whichever period expires later: (b) objections against the acquisition of any such immovable property may be made under section 269E of the principal Act within the period allowed under that section or a period of forty-five days from the commencement of this Act, whichever period expires later.' 2 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7- 1982. 3 Substituted for 'six' by the Income-tax (Amendment) Act, 1973, w.r.e.f. 15-11-1972. ----------------------------------------------------------------------- 1.741 the day on which it was withdrawn shall be excluded in computing the period during which such proceedings may be initiated under this sub-section. (2) The competent authority shall- (a) cause a notice under sub-section (1) in respect of any immovable property to be served on the transferor, the transferee, the person in occupation of the property, if the transferee is not in occupation thereof, and on every person whom the competent authority knows to be interested in the property; (b) cause such notice to be published- (i) in his office by affixing a copy thereof to a conspicuous place; (ii)in the locality in which the immovable property to which it relates is situate, by affixing a copy thereof to a conspicuous part of the property and also by making known in such manner as may be prescribed the substance of such notice at convenient places in the said locality. 1[Explanation.-The provisions of the Explanation to sub-section (2) of section 269B shall apply for the purposes of this sub-section as they apply for the purposes of that sub-section.] 269E. Objections (1) Objections against the acquisition of the immovable property in respect of which a notice has been published in the Official Gazette under sub-section (1) of section 269D may be made- (a) by the transferor or the transferee or any other person referred to in clause (a) of sub-section (2) of that section, within a period of forty-five days from the date of such publication or a period of thirty days from the date of service of notice on such person under the said clause, whichever period expires later; (b) by any other person interested in such immovable property, within forty-five days from the date of such publication. (2) Every objection under sub-section (1) shall be made to the competent authority in writing. (3) For the removal of doubts, it is hereby declared that objection may be made under sub-section (1) that the provisions of clause (a) of subsection (2) of section 269C do not apply in relation to any immovable property on the ground that the fair market value of such property does not exceed the apparent consideration therefor by more than twenty-five per cent of such apparent consideration. 269F. Hearing of objections (1) The competent authority shall fix a day and place for the hearing of the objections made under section 269E against the acquisition under this Chapter of any immovable property, and shall give notice of the same to every person who has made such objection: Provided that such notice shall also be given to the transferee of such property even if he has not made any such objection. --------------------------------------------------------------------- 1 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. ---------------------------------------------------------------------- 1.742 (2) Every person to whom a notice is given under sub-section (1) shall have the right to be heard at the hearing of the objections. (3) The competent authority shall have the power to adjourn the hearing of the objections from time to time. (4) The competent authority may, before disposing of the objections, make such further inquiry as he thinks fit. (5) The decision of the competent. authority in respect of the objections heard shall be in writing and shall state the reasons for the decision with respect to each objection. (6) If after hearing the objections, if any, and after taking into account all the relevant material on record, the competent authority is satisfied that,- (a) the immovable property to which the proceedings relate is of a fair market value exceeding 1 [one hundred] thousand rupees; (b) the fair market value of such property exceeds the apparent consideration therefore by more than fifteen per cent of such apparent consideration; and (c) the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer with such object as is referred to in clause (a) or clause (b) of subsection (1) of section 269C, he may, after obtaining the approval of the Commissioner, make an order for the acquisition of the property under this Chapter. Explanation.-In this sub-section, "Commissioner", in relation to a competent authority, means such Commissioner as the Board may, by general or special order in writing, specify in this behalf. (7)If the competent authority is not satisfied as provided in sub-section(6), he shall, by order in writing, declare that the property will not be acquired under this Chapter. (8) The competent authority shall serve a copy of his order under subsection (6) or sub-section (7), as the case may be, on the transferor, the transferee and on every person who has made objections against such acquisition under section 269E. (9) In any proceedings under this Chapter in respect of any immovable property, no objection shall be entertained on the ground that although the apparent consideration for the property is less than the fair market value of the property on the date of the execution of the instrument of transfer 2[or where such property is of the nature referred to in sub-clause (ii) of clause (e) of section 269A on the date of the transfer], the consideration as agreed to between the parties has been truly stated in the instrument of transfer because such consideration was agreed to having regard to the price that such property would have ordinarily fetched 3[on such transfer in the open market on the date of the conclusion of the ---------------------------------------------------------------------- 1 Substituted for "twenty-five" by the Finance Act, 1984, w.e.f. 1-6- 1984. 2 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7- 1982. 3 Substituted for "on sale in the open market on the date of the conclusion of the agreement to sell the property' by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. ------------------------------------------------------------------------ 1.743 agreement to transfer the property], except where such agreement has been registered under the Registration Act, 1908 1 (16 of 1908). 269G. Appeal against order for acquisition 2 (1) An appeal may be preferred to the Appellate Tribunal against the order for the acquisition of any immovable property made by the competent authority under section 269F,- (a) by the transferor or the transferee or any other person referred to in sub-section (8) of that section, within a period of forty-five days from the date of such order or a period of thirty days, from the date of service of a copy of the order on such person under the said sub-section, whichever period expires later; (b) by any other person interested in such immovable property, within forty-five days from the date of such order: Provided that the Appellate Tribunal may, on an application made in this behalf before the expiry of the said period of forty-five days or, as the case may be, thirty days, permit, by order, the appeal to be presented within such further period as may be specified therein if the applicant satisfies the Appellate Tribunal that he has sufficient cause for not being able to present the appeal within the said period of forty-five days or, as the case may be thirty days. 3(2) Every appeal under this section shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of 4[two hundred] rupees. (3) The Appellate Tribunal shall fix a day and place for the hearing of the appeal and shall give notice of the same to the appellant and to the competent authority. (4) The Appellate Tribunal may, after giving the appellant and the competent authority an opportunity of being heard, pass such orders thereon as it thinks fit. (5) The Appellate Tribunal may, at any time within thirty days from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub- section (4) and shall make such amendment if the mistake is brought to its notice by the appellant or the competent authority: Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person a reasonable opportunity of being heard. (6) The Appellate Tribunal shall send a copy of any orders passed under this section to the appellant and to the Commissioner. (7) Save as provided in section 269H, orders passed by the Appellate Tribunal on appeal shall be final. ------------------------------------------------------------------ 4 Substituted for "one hundred and twenty-five' by the Finance Act, 1981, w.e.f. 1-6-1981. ---------------------------------------------------------------------- 1.744 (8) Every appeal under this section shall be disposed of as expeditiously as possible and endeavour shall be made to dispose of every such appeal within ninety days from the date on which it is presented. (9) The provisions of section 255 [except sub-section (3) thereof) shall, so far as may be, apply in relation to the powers, functions and proceedings of the Appellate Tribunal under this section as they apply in relation to the powers, functions and proceedings of the Appellate Tribunal under Chapter XX. 269H. Appeal to High Court (1) The Commissioner or any person aggrieved by any order of the Appellate Tribunal under section 269G may, within sixty days of the date on which he is served with notice of such order under that section, prefer an appeal against such order to the High Court on any question of law: Provided that the High Court may, on an application made in this behalf before the expiry of the said period of sixty days, permit, by order, the appeal to be presented within such further period as may be specified therein, if the applicant satisfies the High Court that he has sufficient cause for not being able to present the appeal within the said period of sixty days. (2) An appeal under sub-section (1) shall be heard by a Bench of not less than two judges of' the High Court and the provisions of section 259 shall apply in relation to any such appeal as they apply in relation to a case referred to the High Court under section 256. (3) The costs of the appeal shall be in the discretion of the High Court. 269-I. Vesting of property in Central Government (1) As soon as may be after the order for acquisition of any immovable property made under sub-section (6) of section 269F becomes final, the competent authority may, by notice in writing, order any person who may be in possession of the immovable property to surrender or deliver possession thereof to the competent authority or any other person duly authorised in writing by the competent authority in this behalf, within thirty days of the date of the service of the notice. Explanation.-For the purposes of this sub-section, an order for the acquisition of any immovable property (hereafter in this Explanation referred to as the order for acquisition) made under sub- section (6) of section 269F becomes final,- (a) in a case where the order for acquisition is not made the subject of an appeal to the Appellate Tribunal under section 269G, upon the expiry of the period during which such appeal may be presented under that section; (b) in a case where the order for acquisition is made the subject of an appeal to the Appellate Tribunal under section 269G,- (i) if the order for acquisition is confirmed by the Appellate Tribunal and the order of the Appellate Tribunal is not made the subject of an appeal to the High Court under section 269H, upon the expiry of the period during which such appeal may be presented under that section to the High Court; 1.745 (ii) if the order of the Appellate Tribunal is made the subject of an appeal to the High Court tinder section 269H, upon the confirmation of the order for acquisition by the High Court. (2) If any person refuses or fails to comply with the notice under subsection (1), the competent authority or other person duly authorised by the competent authority under that sub-section may take possession of the immovable property and may, for that purpose, use such force as may be necessary. (3) Notwithstanding anything contained in sub-section (2), the competent authority may, for the purpose of taking possession of any property referred to in sub-section (1), requisition the services of any police officer to assist him and it shall be the duty of such officer to comply with such requisition. (4) When the possession of the immovable property is surrendered or delivered under sub-section (1) to the competent authority or a person duly authorised by him in that behalf or, as the case may be, when the possession thereof is taken under sub-section (2) or sub- section (3) by such authority or person,. the property shall vest absolutely in the Central Government free from all encumbrances: Provided that nothing in this sub-section shall operate to discharge the transferee or any other person (not being the Central Government) from liability in respect of such encumbrances and, notwithstanding anything contained in any other law, such liability may be enforced against the transferee or such other person by a suit for damages. 1[(5) Notwithstanding anything contained in sub-section (4) or any other law or any instrument or any agreement for the time being in force, where an order for acquisition of any immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section 269AB, in or with respect to any building or part of a building which has been constructed or which is to be constructed, has become final, then, such order shall, by its own force, have the effect of- (a) vesting such rights in the Central Government, and (b) placing the Central Government in the same position in relation to such rights as the person in whom such rights would have continued to vest if such order had not become final, and the competent authority may issue such directions as he may deem fit to any person concerned for taking the necessary steps for compliance with the provisions of clauses (a) and (b). (6) In the case of any immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section 269AB, in or with respect to any building or part of a building, the provisions of subsections (1), (2) and (3) shall have effect as if the references to immovable property therein were a reference to such building or, as the case may be, part of such building.] ---------------------------------------------------------------------- 1 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. ---------------------------------------------------------------------- 1.746 269J. Compensation (1) Where any immovable property is acquired under this Chapter, the Central Government shall pay for such acquisition compensation which shall be a sum equal to the aggregate of the amount of the apparent consideration for its transfer and fifteen per cent of the said amount: 1[Provided that in a case where, under the agreement between the parties concerned, the whole or any part of the consideration for the transfer of such immovable property is payable on any date or dates falling after the date on which such property is acquired, the compensation payable by the Central Government shall be the aggregate of the following amounts, namely:- (i) an amount equal to fifteen per cent of the apparent consideration; (ii) the amount, if any, that has become payable in accordance with such agreement on or before the date on which such property is acquired under this Chapter; and (iii) the amount payable after the date on which such property is acquired under this Chapter.] (2) Notwithstanding anything contained in sub-section (1)- (a) where, after the transfer to the transferee of the property referred to in that sub-section but before the vesting of the property in the Central Government, the property has been damaged (otherwise than as a result of normal wear and tear), the compensation payable under that sub-section shall be reduced by such amount as the competent authority and the persons entitled to the compensation may agree within fifteen days of the vesting of the property in the Central Government or in default of such agreement as the court may, on a reference made to it in this behalf by the competent authority or by any person duly authorised for the purpose by the competent authority, determine to be the amount that may have to be expended for restoring the property to the condition in which it was at the time of such transfer; (b) where, after the transfer of such property to the transferee but before the date of publication in the Official Gazette of the notice in respect of such property under sub- section (1) of section 269D any improvements have been made to the property, whether by way of addition or alteration or in any other manner, the compensation. payable in respect of such property under sub-section (1) shall be increased by such amount as the competent authority and the persons entitled to the compensation may agree within fifteen days of the vesting of the property in the Central Government or ---------------------------------------------------------------------- 1 Inserted by the Income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. ---------------------------------------------------------------------- 1.747 in default of such agreement as the court may, on a reference made to it in this behalf by the competent authority or by any person duly authorised for the purpose by the competent authority, determine to be the amount spent for making such improvements. (3) Every reference under clause (a) or clause (b) of sub- section (2) shall be made within thirty days of the date on which the immovable property to which-it relates becomes vested in the Central Government or within such further period as the court may, on an application made in this behalf before the expiry of the said period and on being satisfied that there is sufficient cause for doing so, allow and such reference shall state clearly the compensation payable under sub-section (1) in respect of the immovable property and the amount by which, according to the estimate of the competent authority, such compensation shall be reduced under clause (a) or, as the case may be, increased under clause (b) of sub-section (2). (4) The amount by which the compensation payable under sub- section (1) in respect of any immovable property acquired under this Chapter falls short of the amount which would have been payable as compensation if that property had been acquired under the Land Acquisition Act, 1894 (1 of 1894), after the issue of a preliminary notice under section 4 of that Act on the date of publication in the Official Gazette of the notice in respect of the property under sub- section (1) of section 269D, shall be deemed to have been realised by the Central Government as a penalty from the transferee for being a party to a transfer with such object as is referred to in clause (a) or clause (b) of sub-section (1) of section 269C, and no penalty shall be levied for any assessment year on the transferee- (a) under clause (iii) of sub-section (1) of section 271, for concealing the particulars or furnishing inaccurate particulars of so much of his income as is utilised by him for paying to the transferor, by way of consideration for the property, any amount in excess of the apparent consideration for the property, notwithstanding that such amount is included in the income of the transferee; (b) under clause (iii) of sub-section (1) of section 18 of the Wealth-tax Act, 1957 (27 of 1957), for concealing the particulars or furnishing inaccurate particulars of so much of his assets as are utilised by him for paying to the transferor, by way of consideration for the property, any amount in excess of the apparent consideration for the property, notwithstanding that such assets are included in the net wealth of the transferee. 269K. Payment or deposit of compensation (1) The amount of compensation payable in accordance with the provisions of section 269J for the acquisition of any immovable property shall be tendered to the person or persons entitled thereto, as soon as may be, after the property becomes vested in the Central Government under sub-section (4) of section 269-1: 1[Provided that in a case falling under the proviso to sub- section (1) of section 269J, the amounts referred to in clause (i) and clause (ii) of that proviso shall be tendered to the person or persons entitled thereto, as ----------------------------------------------------------------------- 1 Inserted by the income-tax (Amendment) Act, 1981, w.e.f. 1-7-1982. ---------------------------------------------------------------------- 1.748 soon as may be, after the property; becomes vested in the Central Government under section 269-I, and the amount referred to in clause (iii) of the said proviso shall be tendered on the date on which it would be payable in accordance with the agreement between the parties concerned, and where such amount is payable in instalments on different dates, then in such instalments on those dates:] Provided 1[further] that in any case where a reference is or has to be made under sub-section (2) of section 269J to the court for the determination of the amount by which the compensation payable under sub-section (1) of that section shall be reduced or increased, the amount of such compensation as reduced or increased by the amount estimated in that behalf by the competent authority for the purposes of such reference shall be tendered as aforesaid. (2) Notwithstanding anything contained in sub-section (1), if any dispute arises as to the apportionment of the compensation amongst persons claiming to be entitled thereto, the Central Government shall deposit in the court the compensation required to be tendered under subsection (1) and refer such dispute for the decision of the court and the decision of the court thereon shall be final. (3) Notwithstanding anything contained in sub-section (1), if the persons entitled to compensation do not consent to receive it, or if there is no person competent to alienate the immovable property, or if there is any dispute as to the title to receive the compensation, the Central Government shall deposit in the court the compensation required to be tendered under sub-section (1) and refer the matter for the decision of the court: Provided that nothing herein contained shall affect the liability of any person who may receive the whole or any pail of the compensation for any immovable property acquired under this Chapter to pay the same to the person lawfully entitled thereto. (4) If the Central Government fails to tender under sub-section (1) or deposit under sub-section (2) or sub-section (3) the whole or any part of the compensation required to be tendered or deposited thereunder within thirty days of the date on which the immovable property to which the compensation relates becomes vested in the Central Government under sub-section (4) of section 269-I, the Central Government shall be liable to pay simple interest at the rate of 2[fifteen] per cent per annum reckoned from the day immediately following the date of expiry of the said period up to the date on which it so tenders or deposits such compensation or, as the case may be, such part of the compensation. (5) Where any amount of compensation (including interest, if any, thereon) has been deposited in the court under this section, the court may, either of its own motion or on an application made by or on behalf of any party interested or claiming to be interested in such amount, order the same to be invested in such Government or other securities as it may think proper, and may direct the interest or other proceeds of any such ---------------------------------------------------------------------- 1 Inserted by the income-tax (Amendment') Act, 1981, w.e.f. 1-7-1982. 2 Substituted for "twelve' by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. ---------------------------------------------------------------------- 1.749 investment to be accumulated and paid in such manner as will in its opinion, give the parties interested therein the same benefit therefrom as they might have had from the immovable property in respect whereof such amount has been deposited or as near thereto as may be. 269L. Assistance by Valuation Officers (1) The competent authority may,- (a) for the purpose of initiating proceedings for the acquisition of any immovable property under section 269C or for the purpose of making an order under section 269F in respect of any immovable property, require a Valuation Officer to determine the fair market value of such property and report the same to him; (b) for the purpose of estimating the amount by which the compensation payable under sub-section (1) of section 269J in respect of any immovable property may be reduced or, as the case may be, increased under clause (a) or clause (b) of sub- section (2) of that section, require the Valuation Officer to make such estimate and report the same to him. (2) The Valuation Officer to whom a reference is made under clause (a) or clause (b) of sub-section (1) shall, for the purpose of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957). (3) If in an appeal under section 269G against the order for acquisition of any immovable property, the fair market value of such property is in dispute, the Appellate Tribunal shall, on a request being made in this behalf by the competent authority, give an opportunity of being heard to any Valuation Officer nominated for the purpose by the competent authority. Explanation.-In this section, "Valuation Officer" has the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). 269M. Powers of competent authority The competent authority shall have, for the purposes of this Chapter, all the powers that a Commissioner has, for the purposes of this Act, under section 131. 269N. Rectification of mistakes With a view to rectifying any mistake apparent from the record, the competent authority may amend any order made by him under this Chapter at any time before the time for presenting an appeal against such order has expired, either on his own motion or on the mistake being brought to his notice by any person affected by the order: Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person a reasonable opportunity of being heard. 269-O. Appearance by authorised representative or registered valuer Any person who is entitled or required to attend before a competent authority or the Appellate Tribunal in any proceeding tinder this Chapter, otherwise than when required to attend personally for examination on oath or affirmation, may attend- 1.750 (a) by an authorised representative in connection with any matter; (b) by a registered valuer in connection with any matter relating to the valuation of any immovable property for the purposes of this Chapter or the estimation of the amount by which the compensation payable under sub-section (1) of section 269J for the acquisition of any immovable property may be reduced or, as the case may be, increased in accordance with the provisions of clause (a) or clause (b) of sub-section (2) of that section. Explanation.-In this section,- (i) "authorised representative" has the same meaning as in section 288; (ii) "registered valuer" has the same meaning as in clause (oaa) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). 269P. Statement to be furnished in respect of transfers of immovable property 1(1) Notwithstanding anything contained in any other law for the time being in force, no registering officer appointed under the Registration Act, 1908 (16 of 1908), shall register any document which purports to transfer any immovable property belonging to any person unless a statement in duplicate in respect of such transfer, in the prescribed form and verified in the prescribed manner and setting forth such particulars as may be prescribed, is furnished to him along with the instrument of transfer: 2[Provided that the provisions of this sub-section shall not apply in relation to any document which purports to transfer any immovable property for an apparent consideration not exceeding 3[fifty] thousand rupees. Explanation.-For the purposes of this proviso, "apparent consideration" shall have the meaning assigned to it in clause (a) of section 269A subject to the modifications that for the expressions "immovable property transferred" and "instrument of transfer" occurring in that clause, the expressions "immovable property purported to be transferred" and "document purporting to transfer such immovable property" shall, respectively, be substituted.] (2) The registering officer shall, at the end of every fortnight, for-ward to the competent authority,- (a) one set of the statements received by him under sub- section (1) during the fortnight; and (b) a return in the prescribed form4 and verified in the prescribed manner and setting forth such particulars as may be prescribed in respect of documents of the nature referred to in sub-section (1) which have been registered by him during the fortnight. ---------------------------------------------------------------------- 2 Inserted by the Income-tax (Amendment) Act, 1973, w.e.f. 1-1- 1974. 3 Substituted for "ten" by the Finance Act, 1984, w.e.f. 1-6-1984. ---------------------------------------------------------------------- 1.751 269Q. Chapter not to apply to transfers to relatives The provisions of this Chapter shall not apply to or in relation to any transfer of immovable property made by a person to his relative on account of natural love and affection for a consideration which is less than its fair market value if a recital to that effect is made in the instrument of transfer. 269R. Properties liable for acquisition under this Chapter not to be acquired under other laws Notwithstanding anything contained in the Land Acquisition Act, 1894 (1 of 1894), or any corresponding law for the time being in force, no immovable property referred to in section 269C shall be acquired for any purpose of the Union under that Act or such law unless the time for initiation of proceedings for the acquisition of such property under this Chapter has expired without such proceedings having been initiated or unless the competent authority has declared that such property will not be acquired under this Chapter. 1[269RR. Chapter not to apply where transfer of immovable property made after a certain date The provisions of this Chapter shall not apply to or in relation to the transfer of any immovable property made after the 30th day of September, 1986.] 269S. Chapter not to extend to State of Jammu and Kashmir The provisions of this Chapter shall not extend to the State of Jammu and Kashmir.] --------------------------------------------------------------------- 1 Inserted by the Finance Act, 19846, w.e.f. 1-10-1986. ----------------------------------------------------------------------
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