Sections 269K and 269L of Income Tax Act 1961
Sections 269K and 269L formed part of Chapter XXA of the Income-tax Act, 1961. Section 269K regulated payment or deposit of compensation after acquisition and vesting of immovable property, while Section 269L enabled the competent authority to obtain assistance from Valuation Officers.
Section 269K - Payment or deposit of compensation
Tender of compensation after vesting
Compensation payable under Section 269J was required to be tendered to the person or persons entitled to it as soon as may be after the property vested in the Central Government under Section 269I(4).
Where consideration was payable later
In a case governed by the proviso to Section 269J(1), the amounts corresponding to clauses (i) and (ii) were to be tendered as soon as may be after vesting. The amount under clause (iii) was to be tendered on the date on which it would have become payable under the agreement and, where payable in instalments, in those instalments on the specified dates.
Reference concerning reduction or increase of compensation
Where a reference under Section 269J(2) was or had to be made to the court concerning a reduction or increase in compensation, the compensation adjusted by the amount estimated by the competent authority for the reference was to be tendered in accordance with Section 269K.
Dispute about apportionment
If a dispute arose over apportionment among persons claiming entitlement, the Central Government was required to deposit the compensation in court and refer the dispute for the court's decision. The statutory provision made that decision final.
Refusal, incapacity or dispute about title
Where the entitled persons did not consent to receive compensation, no person was competent to alienate the property, or there was a dispute as to title to receive compensation, the Central Government was required to deposit the compensation in court and refer the matter for decision. Receipt by one person did not extinguish that person's liability to pay the amount to the person lawfully entitled.
Interest for delay beyond thirty days
If the Central Government failed to tender or deposit the whole or any part of the required compensation within thirty days from vesting under Section 269I(4), it became liable under the historical provision to pay simple interest at fifteen per cent per annum from the day immediately after expiry of the thirty-day period until tender or deposit.
Investment of compensation deposited in court
The court could, on its own motion or on an application by an interested party, order deposited compensation and interest to be invested in Government or other securities and direct accumulation or payment of the investment proceeds in a manner intended to preserve, as nearly as possible, the benefit that interested parties might have obtained from the property.
Section 269L - Assistance by Valuation Officers
Valuation for acquisition proceedings
For initiating acquisition proceedings under Section 269C or making an acquisition order under Section 269F, the competent authority could require a Valuation Officer to determine the fair market value of the immovable property and report it.
Valuation for compensation adjustment
The competent authority could also require a Valuation Officer to estimate the amount by which compensation under Section 269J(1) might be reduced or increased under Section 269J(2).
Powers of the Valuation Officer
A Valuation Officer dealing with a reference under Section 269L had the powers historically conferred by Section 38A of the Wealth-tax Act, 1957.
Hearing before the Appellate Tribunal
If fair market value was disputed in an appeal under Section 269G, the Appellate Tribunal, on a request by the competent authority, was required to give an opportunity of being heard to a Valuation Officer nominated by that authority.
Meaning of Valuation Officer
For Section 269L, the expression Valuation Officer had the same meaning as in Section 2(r) of the Wealth-tax Act, 1957.
Connected provisions
Section 269I: dealt with vesting of acquired property in the Central Government.
Section 269J: determined compensation and adjustments for damage or improvements.
Sections 269C and 269F: governed initiation and determination of Chapter XXA acquisition proceedings.
Section 269G: provided the appeal to the Appellate Tribunal, including disputes concerning fair market value.
Section 269RR: excludes Chapter XXA from transfers made after 30 September 1986.
Official references
Income Tax Department - Income-tax Act
Income Tax Department - Section 269RR
Income Tax Department e-Filing Portal