Section 269UB and Section 269UC of Income Tax Act 1961: Appropriate Authority and Restrictions on Transfer of Immovable Property

Section 269UB(1): Constitution and local limits

The Central Government could, by an order published in the Official Gazette:

1. constitute as many appropriate authorities as it considered necessary to perform the functions assigned under Chapter XX-C; and
2. define the local limits within which each appropriate authority would perform those functions.

Section 269UB(2): Composition

An appropriate authority consisted of three persons. Two were required to be members of the Indian Income-tax Service, Group A, holding the post of Commissioner of Income-tax or an equivalent or higher post. The third was required to be a member of the Central Engineering Service, Group A, holding the post of Chief Engineer or an equivalent or higher post.

Section 269UB(3): Authority having jurisdiction over property

For functions concerning immovable property referred to in Section 269UC, the competent appropriate authority depended on the location of the property. Where the property was within the local limits of one authority, that authority exercised jurisdiction. Where it was within the local limits of two or more authorities, jurisdiction was to be determined in accordance with rules made by the Board under Section 295.

The Explanation treated certain rights described in Section 269UA(d)(ii), relating to land or a building or part of a building constructed or to be constructed, as situated at the place where the relevant land or building was situated.

Section 269UC(1): Agreement before intended transfer

For an immovable-property transfer falling within the prescribed area and value requirements, the provision required an agreement for transfer between the proposed transferor and transferee in accordance with subsection (2), before the intended transfer. The precise operation of this historical requirement depended on the statutory text and the rules applicable to the transaction at the relevant time.

Section 269UC(2): Written statement

The agreement referred to in subsection (1) had to be reduced to writing in the form of a statement by the parties to the transfer, or by a party acting for himself and on behalf of the other parties.

Section 269UC(3): Prescribed form, particulars and verification

The statement had to be in the prescribed form, contain the prescribed particulars, be verified in the prescribed manner, and be furnished to the appropriate authority in the manner and within the time prescribed.

Section 269UC(4): Defective statement

If the statement was defective, the appropriate authority could intimate the defect and allow the parties fifteen days to rectify it, or such further period as the authority might permit on application. If the defect was not rectified within the allowed period, the statement was deemed never to have been furnished.