Section 269C of Income Tax Act "Immovable property in respect of which proceedings for acquisition may be taken"
269C. (1) Where the competent authority has reason to
believe that any immovable property of a fair market value
exceeding 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).
269D. (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 nine months from the end of the month in which the
instrument of transfer in respect of such property is
registered under the Registration Act, 1908 (16 of 1908),
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 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 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.
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.