Sections 269UJ and 269UK of Income Tax Act 1961: Rectification of Mistakes and Property Transfer Restrictions
Sections 269UJ and 269UK formed part of Chapter XX-C of the Income Tax Act, 1961, the former statutory regime concerning purchase of immovable property by the Central Government in specified transfer cases. Section 269UJ dealt with rectification of a mistake apparent from the record, while Section 269UK restricted revocation or alteration of specified transfer agreements and subsequent transfer of the property during the statutory process.
- Section 269UJ: permitted the appropriate authority to rectify a mistake apparent from the record in an order made under Chapter XX-C.
- Hearing safeguard: a prejudicial amendment could not be made without giving the affected person a reasonable opportunity of being heard.
- Time limit: rectification could not be made after six months from the end of the month in which the order sought to be amended was made.
- Section 269UK: restricted revocation or alteration of an agreement, or transfer of the property, after a statement under Section 269UC, until the statutory conditions permitted it.
- Contravening transfer: a transfer made contrary to Section 269UK(1) was void under Section 269UK(2).
Section 269UJ - Rectification of Mistakes
Section 269UJ empowered the appropriate authority to amend an order made by it under Chapter XX-C where there was a mistake apparent from the record. The authority could act on its own motion or after the mistake was brought to its notice by a person affected by the order.
Main requirements of Section 269UJ
- Nature of mistake: the provision was confined to a mistake apparent from the record.
- Orders covered: the power applied to an order made by the appropriate authority under Chapter XX-C.
- How rectification could begin: the authority could act suo motu or upon the mistake being brought to its notice by an affected person.
- Opportunity of hearing: where the proposed amendment was likely to affect a person prejudicially, a reasonable opportunity of being heard had to be given before the amendment was made.
- Six-month limitation: no amendment could be made after expiry of six months from the end of the month in which the order sought to be amended was made.
Meaning of mistake apparent from the record
For Section 269UJ, the statutory expression was "mistake apparent from the record." The provision created a limited rectification power over orders of the appropriate authority under Chapter XX-C. It should be distinguished from a general power to reopen or reconsider an order merely because another view might later be preferred.
Natural justice under Section 269UJ
The first proviso expressly protected an affected person where rectification could operate prejudicially. In such a case, the appropriate authority was required to provide a reasonable opportunity of being heard before making the amendment.
Section 269UK - Restrictions on Revocation, Alteration and Transfer
Section 269UK began with a non-obstante clause and operated notwithstanding anything contained in any other law for the time being in force. Once a statement relating to an immovable-property transfer had been furnished under Section 269UC, the agreement could not be revoked or altered, and the property could not be transferred, except after one of the statutory conditions in Section 269UK(1) had been satisfied.
When did the restriction cease?
- No purchase order within time: the restriction ceased where the appropriate authority had not made an order for purchase by the Central Government under Section 269UD and the statutory period for making that order had expired.
- Purchase order later abrogated: it also ceased where an order for purchase had been made under Section 269UD(1) but subsequently stood abrogated under Section 269UH(1).
- Consequence of breach: under Section 269UK(2), a transfer of immovable property made in contravention of Section 269UK(1) was void.
Meaning of the non-obstante clause
The words "notwithstanding anything contained in any other law for the time being in force" gave Section 269UK overriding operation within the field covered by the restriction. Its purpose was to prevent the parties from defeating or changing the proposed transaction while the Chapter XX-C purchase process remained capable of operating.
How Sections 269UJ and 269UK Fit Into Chapter XX-C
The provisions operated as part of an interconnected statutory scheme. Section 269UC governed the statement concerning a proposed transfer; Section 269UD governed an order for purchase by the Central Government; Section 269UE dealt with vesting; Sections 269UF and 269UG addressed consideration and payment or deposit; Section 269UH provided for abrogation and re-vesting if the consideration requirements were not met. Section 269UJ supplied a rectification mechanism, while Section 269UK preserved the transaction during the period in which the appropriate authority could exercise the Chapter XX-C powers.
Section 269UP and the 1 July 2002 Cutoff
Section 269UP states that Chapter XX-C does not apply to, or in relation to, the transfer of any immovable property effected on or after 1 July 2002. Consequently, Sections 269UJ and 269UK are not part of a current compulsory-purchase mechanism for transfers effected from that date. Their continuing relevance is chiefly historical and may arise in relation to older transactions or proceedings governed by the former Chapter.
Legal Context Before the Bharatiya Sakshya Adhiniyam 2023
This article is framed in the legal context before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. Sections 269UJ and 269UK are provisions of income-tax law rather than evidence law. For evidentiary issues arising under the earlier regime, the Indian Evidence Act, 1872 was the general evidence statute, subject to the character of the proceeding and any applicable special statutory provisions.
Official Resources
This page provides general information about historical statutory provisions. For any particular legacy transaction or proceeding, the statutory text, amendments, notifications, savings provisions and judicial decisions applicable to the relevant date should be examined.