Sections 269UH and 269UI of Income Tax Act 1961: Re-vesting of Property and Powers of Appropriate Authority
Sections 269UH and 269UI formed part of Chapter XX-C of the Income Tax Act, 1961, which provided for purchase by the Central Government of immovable property in specified transfer cases. Section 269UH prescribed the consequence of failure by the Central Government to tender or deposit the purchase consideration within the statutory period. Section 269UI conferred specified powers on the Appropriate Authority for administering Chapter XX-C.
- Section 269UH: abrogation of the purchase order and re-vesting of the immovable property where the Central Government failed to tender or deposit the required consideration within time.
- Section 269UG: payment or deposit of consideration payable for the Central Government purchase.
- Section 269UE: vesting of the immovable property in the Central Government following the purchase order.
- Section 269UI: powers of the Appropriate Authority by reference to the powers available under Section 131.
- Section 269UP: non-application of Chapter XX-C to transfers effected on or after 1 July 2002.
Section 269UH - Re-vesting on Failure to Pay or Deposit Consideration
Section 269UH operated after an immovable property had vested in the Central Government under Section 269UE. If the Central Government failed to tender the whole or any part of the consideration under Section 269UG(1), or failed to deposit it under Section 269UG(2) or Section 269UG(3), within the period specified by Section 269UG, the statute itself prescribed the consequence.
Legal effect of Section 269UH(1)
- Failure covered: failure to tender under Section 269UG(1), or to deposit under Section 269UG(2) or Section 269UG(3), the whole or any part of the consideration within the prescribed period.
- Purchase order abrogated: the order for purchase by the Central Government made under Section 269UD(1) stood abrogated.
- Property re-vested: the immovable property stood re-vested in the transferor after expiry of the relevant period.
- Exclusion of court time: where a dispute referred to in Section 269UG(2) or Section 269UG(3) was pending before a court, the time taken by the court to pass its final order was excluded in computing the period.
Meaning of abrogation and re-vesting
Abrogation in this context meant that the statutory purchase order under Section 269UD(1) ceased to operate because the consideration requirement was not met within time. Re-vesting meant that the statutory vesting in the Central Government was reversed and the immovable property stood restored to the transferor by operation of Section 269UH.
Declaration and restoration of possession under Section 269UH(2)
Once the purchase order stood abrogated and the property re-vested under Section 269UH(1), the Appropriate Authority was required, as soon as may be, to make a written declaration recording that consequence. A copy of the declaration was to be delivered to the persons referred to in Section 269UD(2). The authority was also required to deliver, or cause to be delivered, possession of the property back to the transferor or, as the case may be, to the person who had been in possession when the property vested in the Central Government under Section 269UE.
Connection between Sections 269UF, 269UG and 269UH
Section 269UF dealt with the consideration payable for purchase of immovable property by the Central Government. Section 269UG governed tender and, where applicable, deposit of that consideration. Section 269UH supplied the statutory consequence when the Government failed to comply with the payment or deposit requirement within the prescribed time. These provisions therefore operated as connected parts of the former Chapter XX-C purchase mechanism.
Section 269UI - Powers of the Appropriate Authority
Section 269UI provided that, for the purposes of Chapter XX-C, the Appropriate Authority had all the powers that a Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner of Income-tax had for the purposes of the Income Tax Act under Section 131.
Powers connected with Section 131
Section 131 conferred specified powers associated with discovery and inspection, enforcing attendance of persons, examining persons on oath, compelling production of books of account and other documents, and issuing commissions. Through Section 269UI, those procedural powers were available to the Appropriate Authority for the purposes of Chapter XX-C.
Meaning of Appropriate Authority
Section 269UB governed constitution of the Appropriate Authority. The Central Government could constitute one or more Appropriate Authorities by order and specify the local limits within which each authority performed its functions. The authority discharged the statutory functions assigned under Chapter XX-C, including functions connected with statements of proposed transfers, purchase orders and the procedural powers incorporated through Section 269UI.
How Sections 269UH and 269UI Worked Within Chapter XX-C
| Provision | Function in the former Chapter XX-C scheme |
|---|---|
| Section 269UC | Restrictions and statement requirements concerning transfer of immovable property. |
| Section 269UD | Order by the Appropriate Authority for purchase by the Central Government. |
| Section 269UE | Vesting of the property or relevant rights in the Central Government. |
| Section 269UF | Consideration payable for the Central Government purchase. |
| Section 269UG | Payment or deposit of consideration. |
| Section 269UH | Abrogation and re-vesting if consideration was not tendered or deposited within time. |
| Section 269UI | Section 131 powers of the Appropriate Authority for purposes of Chapter XX-C. |
| Section 269UP | Chapter XX-C not applicable to transfers effected on or after 1 July 2002. |
Section 269UP and the 1 July 2002 Cutoff
Section 269UP was inserted with effect from 1 July 2002. It provides that the provisions of Chapter XX-C shall not apply to, or in relation to, the transfer of any immovable property effected on or after 1 July 2002. The compulsory-purchase, vesting, payment and re-vesting provisions must therefore be understood as part of a historical regime when dealing with transfers after that date.
Legal Context Before the Bharatiya Sakshya Adhiniyam 2023
This article is framed according to the legal position before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. Sections 269UH and 269UI are provisions of income-tax law rather than evidence law. For evidentiary issues arising under the earlier legal regime, the Indian Evidence Act, 1872 was the general law of evidence, subject to the character of the proceeding and any applicable special statutory provision.
Practical Legal Significance
For a historical Chapter XX-C matter, the relevant dates are critical. The transfer date, purchase order, vesting, tender or deposit of consideration, any dispute before a court and any declaration of re-vesting should be examined against the version of the Income Tax Act applicable at the material time. Section 269UH was not merely procedural: upon the statutory failure specified in the section, the purchase order stood abrogated and the property stood re-vested according to the terms of the provision.
Official Resources
This page explains historical statutory provisions for general legal information. In a specific matter, the statutory text, amendments, notifications, savings provisions and judicial decisions applicable to the relevant date should be examined.