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What is Immovable property in respect of which proceedings for acquisition may be taken? What is Preliminary notice? Section 269C and 269D of Income Tax Act 1961

Immovable property in respect of which proceedings for acquisition may be taken and Preliminary notice are defined under section 269C and 269D of Income Tax Act 1961. Provisions under these Sections are:

Section 269C of Income Tax Act "Immovable property in respect of which proceedings for acquisition may be taken"

Section 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).

Section 269D of Income Tax Act "Preliminary notice"

Section 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.

Income Tax Act 1961

What is Registration of certain transactions? What is Competent authority? Section 269AB and 269B of Income Tax Act 1961

What is Immovable property in respect of which proceedings for acquisition may be taken? What is Preliminary notice? Section 269C and 269D of Income Tax Act 1961

What are Objections? What is Hearing of objections? Section 269E and 269F of Income Tax Act 1961

What is Appeal against order for acquisition? What is Appeal to High Court? Section 269G and 269H of Income Tax Act 1961

What is Vesting of property in Central Government? What is Compensation? Section 269I and 269J of Income Tax Act 1961

What is Payment or deposit of compensation? What is Assistance by Valuation Officers? Section 269K and 269L of Income Tax Act 1961

What is Powers of competent authority? What is Rectification of mistakes? What is Appearance by authorised representative or registered valuer? Section 269M, 269N and 269O of Income Tax Act 1961

What is Statement to be furnished in respect of transfers of immovable property? What is the meaning of Chapter not to apply to transfers to relatives? Section 269P and 269Q of Income Tax Act 1961

What is the meaning Properties liable for acquisition under this Chapter not to be acquired under other laws? What is Chapter not to apply where transfer of immovable property made after a certain date? What is Chapter not to extend to State of Jammu and Kashmir? Section 269R, 269RR and 269S of Income Tax Act 1961

What is the Mode of taking or accepting certain loans, deposits and specified sum? What is Mode of repayment of certain loans or deposits? Section 269SS and 269T of Income Tax Act 1961

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