Chapter XX APPEALSAND REVISION

1[A.—Appeals2*** to the Deputy Commissioner (Appeals) and Commissioner (Appeals)

246.Appealable orders.—(1) Subject to the provisions of sub-section (2), any assessee aggrieved by any of the following orders of an Assessing Officer (other than the Deputy Commissioner) may appeal to the Deputy Commissioner (Appeals) 3[before the 1st day of June, 2000] against such order—

1. (a) an order against the assessee, where the assessee denies his liability to be assessed under this Act 4[or an intimation under sub-section (1) or sub-section (1B) of section 143, where the assessee objects to the making of adjustments,] or any order of assessment under sub-section (3) of section 143 or section 144, where the assessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed;
2. (b) an order of assessment, reassessment or recomputation under section 147 or section 150;
3. (c) an order under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections;
4. (d) an order made under section 163 treating the assessee as the agent of a non-resident;
5. (e) an order under sub-section (2) or sub-section (3) of section 170;
6. (f) an order under section 171;
7. (g) any order under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185 5*** 6[in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992];
8. (h) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section 186 5*** 6[in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992];
   • (i) an order under section 201;
9. (j) an order under section 216 in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year;
10. (k) an order under section 237; 2. The words “or applications” omitted by Act 3 of 1989, s. 42 (w.e.f. 1-4-1989). 5. The words, figures and letters “in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year” omitted by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).
11. (l) an order imposing a penalty under—
    • (i) section 221, or
    • (ii) section 271, section 271A, section 271B, 1[*** section 272A, section 272AA or section 272BB];
    • (iii) 2*** section 272, section 272B or section 273, as they stood immediately before the 1st day of April, 1989, in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment years. 3[(1A) Notwithstanding anything contained in sub-section (1), every appeal filed, on or after the 1st day of October, 1998 but before the 1st day of June, 2000, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day.]

¹ Subs. by Act 4 of 1988, s. 99, for the Sub-heading and section 246 (w.e.f. 1-4-1989).

³ Ins. by Act 10 of 2000, s. 65 (w.e.f. 1-6-2000).

⁴ Ins. by Act 32 of 1994, s. 46 (w.e.f. 1-6-1994).

⁶ Ins. by Act 18 of 1992, s. 83 (w.e.f. 1-4-1993).

1. (2) Notwithstanding anything contained in sub-section (1), any assessee aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) 3[before the 1st day of June, 2000] against such order—
   • (a) 4[an intimation or order specified in sub-section (1) where such intimation is sent or such order] is made by the Deputy Commissioner in exercise of the powers or functions conferred on or assigned to him under section 120 or section 124;
   • (b) an order specified in clauses (a) to (e) (both inclusive) and clauses (i) to (l) (both inclusive) of sub-section (1) 5[or an order under section 104, as it stood immediately before the 1st day of April, 1988 in respect of any assessment for the assessment year commencing on the 1st day of April, 1987 or any earlier assessment year] made against the assessee, being a company;
   • (c) an order of assessment made after the 30th day of September, 1984, on the basis of the directions issued by the Deputy Commissioner under section 144A;
   • (d) an order made by the Deputy Commissioner under section 154; 6[(da) an order of assessment made by an Assessing Officer under clause (c) of section 158BC, in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or after the 1st day of January, 1997;
   • (db) an order imposing a penalty under sub-section (2) of section 158BFA;] 1. The words, figures and letters “section 271C, section 271D, section 271E,”omitted by Act 12 of 1990, s. 41 (w.e.f. 1-41990). Earlier “Section 271E, Section 272A, Section 272AA or Section 272BB” were substituted for “Section 271E or Section 272A” by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989). 2. The words, brackets and figures “sub-section (1) of section 271,” omitted by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).
   • (e) an order imposing a penalty under section 271B 1[or section 271BB]; 2[(ee) an order made by a Deputy Commissioner imposing a penalty under section 271C, section 271D or section 271E;]
   • (f) an order made by a Deputy Commissioner or a Deputy Director imposing a penalty under section 272A; 3[(ff) an order made by a Deputy Commissioner imposing a penalty under section 272AA;] 4[(g) an order imposing a penalty under Chapter XXI by the Income-tax Officer or the Assistant Commissioner where such penalty has been imposed with the previous approval of the Deputy Commissioner under sub-section (2) of section 274;]
   • (h) an order made by an Assessing Officer (other than Deputy Commissioner) under the provisions of this Act in the case of such person or classes of persons as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct.
2. (3) Notwithstanding anything contained in sub-section (1), the Board or the 5[Principal Director General or Director General], or the 6[Principal Chief Commissioner or Chief Commissioner] or 7[Principal Commissioner or Commissioner] if so authorised by the Board, may, by order in writing, transfer any appeal which is pending before a Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) if the Board or, as the case may be, the 5[Principal Director General or Director General] or 6[Principal Chief Commissioner or Chief Commissioner] or 7[Principal Commissioner or Commissioner] (at the request of the appellant or otherwise) is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter, from the stage at which it was before it was so transferred: Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be reheard. Explanation.—For the purposes of this section,—
   • (a) “appointed day” means the 10th day of July, 1978, being the day appointed under section 39 of the Finance (No. 2) Act, 1977 (29 of 1977);
   • (b) “status” means the category under which the assessee is assessed as “individual”, “Hindu undivided family” and so on.]

³ Ins. by Act 10 of 2000, s. 65 (w.e.f. 1-6-2000).

⁴ Subs. by Act 32 of 1994, s. 46, for “an order specified in sub-section (1) where such order” (w.e.f. 1-6-1994).

⁵ Ins. by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

⁶ Ins. by Act 14 of 1997, s. 8 (w.e.f. 1-1-1997).

¹ Ins. by Act 12 of 1990, s. 50 (w.e.f. 1-4-1990).

² Ins. by s. 41, ibid. (w.e.f. 1-4-1990).

³ Ins. by Act 3 of 1989, s. 43 (w.e.f. 1-4-1989).

⁴ Subs. by s. 43, ibid., for clause (g) (w.e.f. 1-4-1989).

⁵ Subs. by Act 25 of 2014, s. 4, for “Director General” (w.e.f. 1-6-2013).

⁶ Subs. by s. 4, ibid., for “Chief Commissioner” (w.e.f. 1-6-2013).

⁷ Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

1. (1) 2[Any assessee or any deductor 3[or any collector] aggrieved] by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against—
   • (a) 4[an order passed by a Joint Commissioner under clause (ii) of sub-section (3) of section 115VP or an order against the assessee] where the assessee denies his liability to be assessed under this Act or an intimation under sub-section (1) or sub-section (1B) of 5[section 143 or 6[sub-section (1) of section 200A or sub-section (1) of section 206CB, where the assessee or the deductor or the collector] objects] to the making of adjustments, or any order of assessment under sub-section (3) of section 143 7[except an order passed in pursuance of directions of the Dispute Resolution Panel 8*** 9[or an order referred to in sub-section (12) of section 144BA]] or section 144, to the income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed; 10[(aa) an order of assessment under sub-section (3) of section 115WE or section 115WF, where the assessee, being an employer objects to the value of fringe benefits assessed;
   • (ab) an order of assessment or reassessment under section 115WG;
   • (b) an order of assessment, reassessment or recomputation under section 147 7[except anorder passed in pursuance of directions of the Dispute Resolution Panel 8*** 9[or an order referred to in sub-section (12) of section 144BA]] or section 150; 11[(ba) an order of assessment or reassessment 12[under section 153A 7[except an order passed in pursuance of directions of the 13[Dispute Resolution Panel]] 8*** 9[or an order referred to in subsection (12) ofsection 144BA];] 14[(bb) an order of assessment or reassessment under sub-section (3) of section 92CD;]
   • (c) an order made under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections 15*** 9[except an order referred to in sub-section (12) of section 144BA]; 8. The words, brackets, figures and letters “or an order referred to in sub-section (12) of section 144BA” omitted by Act 17 of 2013, s. 55 (w.e.f. 1-4-2013). 15. The words, brackets, figures and letters “except where it is in respect of an order as referred to in sub-section (12) of section 144BA” omitted by Act 17 of 2013, s. 55 (w.e.f. 1-4-2013).
   • (d) an order made under section 163 treating the assessee as the agent of a non-resident;
   • (e) an order made under sub-section (2) or sub-section (3) of section 170;
   • (f) an order made under section 171;
   • (g) an order made under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185 in respect of an assessment for the assessment year commencing on or before the 1st day of April, 1992;
   • (h) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section 186 in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992 or any earlier assessment year; 1[(ha) an order made under section 201;] 2[(hb) an order made under sub-section (6A) of section 206C;]
     • (i) an order made under section 237;
   • (j) an order imposing a penalty under—
   • (A) section 221; or
   • (B) section271, section 271A, 2[section 271AAA,] 3[section 271AAB,] 4[section 271F, section 271FB,] section 272AA or section 272BB;
   • (C) section 272, section 272B or section 273, as they stood immediately before the 1st day of April, 1989, in respect of an assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment years; 5[(ja) an order of imposing or enhancing penalty under sub-section (1A) of section 275;]
   • (k) an order of assessment made by an Assessing Officer under clause (c) of section 158BC, in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A on or after the 1st day of January, 1997;
   • (l) an order imposing a penalty under sub-section (2) of section 158BFA;
   • (m) an order imposing a penalty under section 271B or section 271BB;
   • (n) an order made by a Deputy Commissioner imposing a penalty under 6[section 271C, section 271CA,] section 271D or section 271E;
   • (o) an order made by a Deputy Commissioner or a Deputy Director imposing a penalty under section 272A;
   • (p) an order made by a Deputy Commissioner imposing a penalty under section 272AA;
   • (q) an order imposing a penalty under Chapter XXI;
   • (r) an order made by an Assessing Officer other than a Deputy Commissioner under the provisions of this Act in the case of such person or class of persons, as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct. Explanation.—For the purposes of this sub-section, where on or after the 1st day of October, 1998, the post of Deputy Commissioner has been redesignated as Joint Commissioner and the post of Deputy Director has been redesignated as Joint Director, the references in this sub-section for “Deputy Commissioner” and “Deputy Director” shall be substituted by “Joint Commissioner” and “Joint Director” respectively. 1[(1A) Every appeal filed by an assessee in default against an order under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 shall be deemed to have been filed under this section.] 2[(1B) Every appeal filed by an assessee in default against an order under sub-section (6A) of section 206C on or after the 1st day of April, 2007 but before the 1st day of June, 2007 shall be deemed to have been filed under this section.]
2. (2) Notwithstanding anything contained in sub-section (1) of section 246, every appeal under this Act which is pending immediately before the appointed day, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeals and which is so pending shall stand transferred on that date to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day : Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be reopened or that he be re-heard. Explanation.—For the purposes of this section, “appointed day” means the day appointed by the Central Government by notification in the Official Gazette.] 247. [Appeal by partner].—Omitted by the Finance Act, 1992 (18 of 1992), s. 84 (w.e.f. 1-4-1993). 3[248. Appeal by a person denying liability to deduct tax in certain cases.—Where under an agreement or other arrangement, the tax deductible on any income, other than interest, under section 195 is to be borne by the person by whom the income is payable, and such person having paid such tax to the credit of the Central Government, claims that no tax was required to be deducted on such income, he may appeal to the Commissioner (Appeals) for a declaration that no tax was deductible on such income.]

¹ Ins. by Act 21 of 1998, s. 49 (w.e.f. 1-10-1998).

² Subs. by Act 23 of 2012, s. 94, for “Any assessee aggrieved” (w.e.f. 1-7-2012).

³ Ins. by Act 20 of 2015, s. 64, (w.e.f. 1-6-2015).

⁴ Subs. by Act 23 of 2004, s. 53, for “an order against the assessee” (w.e.f. 1-10-2004).

⁵ Subs. by Act 23 of 2012, s. 94, for “section 143, where the assessee objects” (w.e.f. 1-7-2012).

⁶ Subs. by Act 20 of 2015, s. 64, for “sub-section (1) of section 200A, where the assessee or the deductor” (w.e.f. 1-62015).

⁷ Subs. by Act 23 of 2012, s. 94, for “except an order passed in pursuance of directions of the Dispute Resolution Panel” (w.e.f. 1-4-2013).

⁹ Ins. by s. 55, ibid. (w.e.f. 1-4-2016).

¹⁰ Ins. by Act 18 of 2005, s. 57 (w.e.f. 1-4-2006).

¹¹ Ins. by Act 32 of 2003, s. 93 (w.e.f. 1-6-2003).

¹² Subs. by Act 23 of 2012, s. 94, for “under section 153A” (w.r.e.f. 1-10-2009).

¹³ Subs. by s. 94, ibid., for “Dispute Resolution Panel” (w.e.f. 1-4-2013).

¹⁴ Ins. by s. 94, ibid. (w.e.f. 1-7-2012).

¹ Ins. by Act 10 of 2000, s. 66 (w.e.f. 1-6-2000).

² Ins. by Act 22 of 2007, s. 71 (w.e.f. 1-6-2007).

³ Ins. by Act 23 of 2012, s. 94 (w.e.f. 1-7-2012).

⁴ Subs. by Act 18 of 2005, s. 57, for “Section 271F” (w.e.f. 1-4-2006).

⁵ Ins. by Act 29 of 2006, s. 17 (w.e.f. 13-7-2006).

⁶ Subs. by Act 21 of 2006, s. 51, for “section 271C” (w.e.f. 1-4-2007).

1. (i) where the total income of the assessee as computed by the Assessing Officer in the case to which the appeal relates is one hundred thousand rupees or less, two hundred fifty rupees;
2. (ii) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than one hundred thousand rupees but not more than two hundred thousand rupees, five hundred rupees;
3. (iii) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than two hundred thousand rupees, one thousand rupees;] 1[(iv) where the subject matter of an appeal is not covered under clauses (i), (ii) and (iii), two hundred fifty rupees.]

¹ Ins. by Act 10 of 2000, s. 66 (w.e.f. 1-6-2000).

² Ins. by Act 22 of 2007, s. 71 (w.e.f. 1-6-2007).

³ Subs. by s. 72, ibid., for section 248 (w.e.f. 1-6-2007). Earlier it was substituted by Act 29 of 1977, s. 39 and the fifth Schedule (w.e.f. 10-7-1978).

⁴ Ins. by Act 21 of 1998, s. 50 (w.e.f. 1-10-1998).

1. (2) The appeal shall be presented within thirty days of the following date, that is to say,— 2[(a) where the appeal is under section 248, the date of payment of the tax, or] 3[(b) where the appeal relates to any assessment or penalty, the date of service of the notice of demand relating to the assessment or penalty: Provided that, where an application has been made under section 146 for reopening an assessment, the period from the date on which the application is made to the date on which the order passed on the application is served on the assessee shall be 4[excluded :]] 5[Provided further that where an application has been made under sub-section (1) of section 270AA, the period beginning from the date on which the application is made, to the date on which the order rejecting the application is served on the assessee, shall be excluded or:]
   • (c) in any other case, the date on which intimation of the order sought to be appealed against is served. 6[(2A) Notwithstanding anything contained in sub-section (2), where an order has been made under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 and the assessee in default has not presented any appeal within the time specified in that sub-section, he may present such appeal before the 1st day of July, 2000.]
2. (3) The 7[*** Commissioner (Appeals)] may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period. 8[(4) No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,—
   • (a) where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him; or 5. The proviso inserted by s. 93, ibid. (w.e.f. 1-4-2017). 7. The words and brackets “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21 of 1998, s. 50 (w.e.f. 1-10-1998). Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-198) and the words and brackets “or, as the case may be, the Commissioner (Appeals)” were inserted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978).
   • (b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him: Provided that, 1[in a case falling under clause (b) and] on an application made by the appellant in this behalf, the 2[*** Commissioner (Appeals)] may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of 3[that clause].]

¹ Ins. by Act 27 of 1999, s. 83 (w.e.f. 1-6-1999).

² Subs. by Act 22 of 2007, s. 73, for clause (a) (w.e.f. 1-6-2007).

³ Subs. by Act 41 of 1975, s. 59, for clause (b) (w.e.f. 1-10-1975).

⁴ Subs. by Act 28 of 2016, s. 93, for “excluded, or” (w.e.f. 1-4-2017).

⁶ Ins. by Act 10 of 2000, s. 67 (w.e.f. 1-6-2000).

⁸ Ins. by Act 41 of 1975, s. 59 (w.e.f. 1-10-1975).

1. (1) The 4[*** Commissioner (Appeals)] shall fix a day and place for the hearing of the appeal, and shall give notice of the same to the appellant and to the 5[Assessing Officer] against whose order the appeal is preferred.
2. (2) The following shall have the right to be heard at the hearing of the appeal—
   • (a) the appellant, either in person or by an authorised representative;
   • (b) the 5[Assessing Officer,] either in person or by a representative.
3. (3) The 4[*** Commissioner (Appeals)] shall have the power to adjourn the hearing of the appeal from time to time.
4. (4) The 4[*** Commissioner (Appeals)] may, before disposing of any appeal, make such further inquiry as he thinks fit, or may direct the 5[Assessing Officer] to make further inquiry and report the result of the same to the 4[*** Commissioner (Appeals)].
5. (5) The 4[*** Commissioner (Appeals)] may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the 4[*** Commissioner (Appeals)] is satisfied that the omission of that ground from the form of appeal was not wilful or unreasonable.
6. (6) The order of the 4[*** Commissioner (Appeals)] disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. 6[(6A) In every appeal, the 4[*** Commissioner (Appeals)], where it is possible, may hear and decide such appeal within a period of one year from the end of the financial year in which such appeal is filed before him under sub-section (1) of section 246A.]
7. (7) On the disposal of the appeal, the 4[*** Commissioner (Appeals)] shall communicate the order passed by him to the assessee and to the 7[8[Principal Chief Commissioner or Chief Commissioner] or 9[Principal Commissioner or Commissioner]]. 2. The words and brackets “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21 of 1998, s. 50 (w.e.f. 1-10-1998). Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-198) and the words and brackets “or, as the case may be, the Commissioner (Appeals)” were inserted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 4. The words and brackets “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21 of 1998, s. 65 (w.e.f.1-10-1998). Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-198) and the words and brackets “or, as the case may be, the Commissioner (Appeals)” were inserted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978).

¹ Ins. by Act 3 of 1989, s. 45 (w.e.f. 1-4-1989).

³ Subs. by Act 3 of 1989, s. 45, for “this sub-section” (w.e.f. 1-4-1989).

⁵ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

⁶ Ins. by Act 27 of 1999, s. 84 (w.e.f. 1-6-1999).

⁷ Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988).

⁸ Subs. by Act 25 of 2014, s. 4 for “Chief Commissioner” (w.e.f. 1-6-2013).

⁹ Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

1. (1) In disposing of an appeal, the 1[ Commissioner (Appeals)] shall have the following powers—
   • (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment2***; 3[(aa) in an appeal against the order of assessment in respect of which the proceeding before the Settlement Commission abates under section 245HA, he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment;]
   • (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty;
   • (c) in any other case, he may pass such orders in the appeal as he thinks fit.
2. (2) The 1[*** Commissioner (Appeals)] shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction. Explanation.—In disposing of an appeal, the 1[ Commissioner (Appeals)] may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the 1[ Commissioner (Appeals)] by the appellant. B.—Appeals to the Appellate Tribunal

1. (1) The Central Government shall constitute an Appellate Tribunal consisting of as many judicial and accountant members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act. 4[(2) A judicial member shall be a person who has for at least ten years held a judicial office in the territory of India or who has been a member of the 5[Indian Legal Service] and has held a post in 6[Grade II] of that Service or any equivalent or higher post for at least three years or who has been an advocate for at least ten years. Explanation.—For the purposes of this sub-section,—
   • (i) in computing the period during which a person has held judicial office in the territory of India, there shall be included any period, after he has held any judicial office, during which the person has been an advocate or has held the office of a member of a Tribunal or any post, under the Union or a State, requiring special knowledge of law; 1. The words and brackets “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21 of 1998, s. 65 (w.e.f. 1-10-1998). Earlier “Deputy Commissioner (Appeals)” was substituted for “Appellate Assistant Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-198) and the words and brackets “or, as the case may be, the Commissioner (Appeals)” were inserted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 2. The certain words omitted by Act 14 of 2001, s. 83 (w.e.f. 1-6-2001).
   • (ii) in computing the period during which a person has been an advocate, there shall be included any period during which the person has held judicial office or the office of a member of a Tribunal or any post, under the Union or a State, requiring special knowledge of law after he became an advocate. (2A) An accountant member shall be a person who has for at least ten years been in the practice of accountancy as a chartered accountant under the Chartered Accountants Act, 1949 (38 of 1949), or as a registered accountant under any law formerly in force or partly as a registered accountant and partly as a chartered accountant, or who has been a member of the Indian Income-tax Service, Group A and has held the post of 1[Additional Commissioner of Income-tax] or any equivalent or higher post for at least three years.] 2[(3) The Central Government shall appoint—
   • (a) a person who is a sitting or retired Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court; or
   • (b) 3*** one of the Vice-Presidents of the Appellate Tribunal, to be the President thereof.] 4[(4) The Central Government may appoint one or more members of the Appellate Tribunal to be the Vice-President or, as the case may be, Vice-Presidents thereof. 5*
2. (5) 6[The 7*** Vice-President] shall exercise such of the powers and perform such of the functions of the President as may be delegated to him by the President by a general or special order in writing.]

³ Ins. by Act 18 of 2008, s. 49 (w.e.f. 1-4-2008).

⁴ Subs. by Act 16 of 1981, s. 18, for sub-section (2) (w.e.f. 1-4-1981).

⁵ Subs. by Act 21 of 1998, s. 51, for “Central Legal Service” (w.e.f. 1-8-1998).

⁶ Subs. by s. 51, ibid., for “Grade I” (w.e.f. 1-8-1998).

Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the President, Vice-President and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the President, Vice-President and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 (7 of 2017) had not come into force.]

¹ Subs. by Act 21 of 1998, s. 51, for “Commissioner of Income-tax” (w.e.f. 1-8-1998).

² Subs. by Act 17 of 2013, s. 56, for sub-section (3) (w.e.f. 1-6-2013).

⁴ Ins. by Act 16 of 1972, s. 40 (w.e.f. 1-4-1972).

⁶ Subs. by Act 21 of 1984, s. 24, for “A Vice-President” (w.e.f. 1-4-1984).

3. The words “the Senior Vice-President or” omitted by Act 28 of 2016, s. 94 (w.e.f. 1-6-2016). 5. Sub-section (4A) omitted by Act 28 of 2016, s. 94 (w.e.f. 1-6-2016). Which was inserted by Act 21 of 1984, s. 24 (w.e.f.1-4-1984). 7. The words “Senior Vice-President or a” omitted by Act 28 of 2016, s. 94 (w.e.f. 1-6-2016). 8. Section 252A shall stand inserted by Act 7 of 2017, s. 174.

1. (1) Any assessee aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order—
   • (a) an order passed by 1[an 2[Deputy Commissioner (Appeals)] 3[before the 1st day of October, 1998] or, as the case may be, a Commissioner (Appeals)] under 4* 5[section 154], 6* section 250, 7[section 270A] 8[, section 271, section 271A 9[, section 271J] or section 272A]; or 10[(b) an order passed by an Assessing Officer under clause (c) of section 158BC, in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, after the 30th day of June, 1995, but before the 1st day of January, 1997; or] 11[(ba) an order passed by an Assessing Officer under sub-section (1) of section 115VZC; or]
   • (c) 12[an order passed by a 13[Principal Commissioner or Commissioner] 14[under section 12AA or under clause (vi) of sub-section (5) of section 80G] or under section 263] 7[or under section 270A] 15[or under section 271] 16[or under section 272A] 5[17*** or an order passed by him under section 154 amending his order under section 263] 18[or an order passed by a 19[Principal Chief Commissioner or Chief Commissioner] or a 20[Principal Director General or Director General] or a 21[22[Principal Director or Director] under section 272A]; or] 23[(d) an order passed by an Assessing Officer under sub-section (3), of section 143 or 24[section 147 or section 153A or section 153C] in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 154 in respect of such order;] 25[(e) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 or section 153A or section 153C with the approval of the 13[Principal Commissioner or Commissioner] as referred to in sub-section (12) of section 144BA or an order passed under section 154 or section 155 in respect of such order;] 26[(f) an order passed by the prescribed authority under 27[sub-clause (iv) or sub-clause (v) or] sub-clause (vi) or sub-clause (via) of clause (23C) of section 10.] 4. The words, brackets and figures “sub-section (2) of section 131” omitted by Act 3 of 1989, s. 46 (w.e.f. 1-4-1989). 6. The word, figures and letters “section 246A,” omitted by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier the quoted expression portion inserted byAct 4 of 1988, s. 126 (w.e.f. 1-4-1989). 17. The words “or under section 285A” omitted by Act 26 of 1988, s. 54 (w.e.f. 1-4-1988).
2. (2) The 1[Principal Commissioner or Commissioner] may, if he objects to any order passed by 2[an 3[Deputy Commissioner (Appeals)] 4[before the 1st day of October, 1998] or, as the case may be, a Commissioner (Appeals)] under 5[section 154 or] section 250, direct the 6[Assessing Officer] to appeal to the Appellate Tribunal against the order. 7*
3. (3) Every appeal under sub-section (1) or sub-section (2) shall be filed within sixty days of the date on which the order sought to be appealed against is communicated to the assessee or to the 1[Principal Commissioner or Commissioner], as the case may be: 8[Provided that in respect of any appeal under clause (b) of sub-section (1), this sub-section shall have effect as if for the words “sixty days”, the words “thirty days” had been substituted.] 9* 10[(4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal against the order of the Commissioner (Appeals), has been preferred under sub-section (1) or sub-section (2) by the other party, may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Commissioner (Appeals), and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3).]
4. (5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period. 11[(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, in the case of an appeal made, on or after the 1st day of October, 1998, irrespective of the date of initiation of the assessment proceedings relating thereto, be accompanied by a fee of,—
   • (a) where the total income of the assessee as computed by the Assessing Officer, in the case to which the appeal relates, is one hundred thousand rupees or less, five hundred rupees,
   • (b) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than one hundred thousand rupees but not more than two hundred thousand rupees, one thousand five hundred rupees,
   • (c) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than two hundred thousand rupees, one per cent of the assessed income, subject to a maximum of ten thousand rupees, 12[(d) where the subject matter of an appeal relates to any matter, other than those specified in clauses (a), (b) and (c), five hundred rupees:] 13[Provided that no fee shall be payable in the case of an appeal referred to in sub-section (2), or, sub-section (2A) as it stood before its amendment by the Finance Act, 2016, or, a memorandum of cross objections referred to in sub-section (4).]
5. (7) An application for stay of demand shall be accompanied by a fee of five hundred rupees.] 7. Sub-section (2A) omitted by Act 28 of 2016, s. 95 (w.e.f. 1-6-2016). 9. Sub-section (3A) omitted by Act 28 of 2016, s. 95 (w.e.f. 1-6-2016).

¹ Subs. by Act 29 of 1977, s. 39 and the Fifth Schedule, for “an Appellate Assistant Commissioner” (w.e.f. 10-7-1978).

² Subs. by Act 4 of 1988, s. 2, for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).

³ Ins. by Act 21 of 1998, s. 52 (w.e.f. 1-10-1998).

⁵ Ins. by Act 31 of 1964, s. 12 (w.e.f. 6-10-1964).

⁷ Ins. by Act 28 of 2016, s. 95 (w.e.f. 1-4-2017).

⁸ Subs. by Act 41 of 1975, s. 60, for “or section 271” (w.e.f. 1-4-1976).

⁹ Ins. by Act 13 of 2018, s. 52 (w.e.f. 1-4-2018).

¹⁰ Subs. by Act 14 of 1997, s. 9, for clause (b) (w.e.f. 1-1-1997). Earlier the clause (b) was inserted by Act 22 of 1995, s. 45 (w.e.f. 1-7-1995).

¹¹ Ins. by Act 23 of 2004, s. 54 (w.e.f. 1-10-2004).

¹² Subs. by Act 27 of 1999, s. 85, for “an order passed by a Commissioner under section 263” (w.e.f. 1-6-1999).

¹³ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).

¹⁴ Subs. by Act 22 of 2007, s. 74, for “under section 12AA” (w.e.f. 1-6-2007).

¹⁵ Ins. by Act 20 of 2002, s. 98 (w.e.f. 1-6-2002).

¹⁶ Ins. by Act 41 of 1975, s. 60 (w.e.f. 1-4-1976).

¹⁸ Ins. by Act 3 of 1989, s. 46 (w.e.f. 1-4-1989).

¹⁹ Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.r.e.f. 1-6-2013).

²⁰ Subs. by s. 4, ibid.,for “Director General” (w.r.e.f. 1-6-2013).

²¹ Subs. by Act 33 of 2009, s. 73, for “Director under section 272A.” (w.e.f. 1-10-2009).

²² Subs. by Act 25 of 2014, s. 4, for “Director” (w.r.e.f. 1-6-2013).

²³ Ins. by Act 33 of 2009, s. 73 (w.e.f. 1-10-2009).

²⁴ Subs. by Act 23 of 2012, s. 95, for “section 147” (w.e.f. 1-10-2009).

²⁵ Ins. by Act 17 of 2013, s. 57 (w.e.f. 1-4-2016). Earlier clause (e) was omitted by Act 17 of 2013, s. 57 (w.e.f. 1-4-2016) which was inserted by Act 23 of 2012, s. 95 (w.e.f. 1-4-2013).

²⁶ Ins. by Act 20 of 2015, s. 65 (w.e.f. 1-6-2015).

²⁷ Ins. by Act 7 of 2017, s. 83 (w.e.f. 1-4-2017).

¹ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).

² Subs. by Act 29 of 1977, s. 39 and the Fifth Schedule, for “an Appellate Assistant Commissioner” (w.e.f. 10-7-1978).

³ Subs. by Act 4 of 1988, s. 2, for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).

⁴ Ins. by Act 21 of 1998, s. 52 (w.e.f. 1-10-1998).

⁵ Ins. by Act 31 of 1964, s. 12 (w.e.f. 6-10-1964).

⁶ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

⁸ Ins. by Act 22 of 1995, s. 45 (w.e.f. 1-7-1995).

¹⁰ Subs. by s. 95, ibid.,for sub-section (4) (w.e.f. 1-6-2016).

¹¹ Subs. by Act 21 of 1998, s. 52, for sub-section (6) (w.e.f. 1-10-1998).

¹² Ins. by Act 27 of 1999, s. 85 (w.e.f. 1-6-1999).

¹³ Subs. by Act 28 of 2016, s. 95, for the proviso (w.r.e.f. 1-7-2012).

1. (1) The Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. 1*
2. (2) The Appellate Tribunal may, at any time within2[six months from the end of the month in which the order was passed], with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the 3[Assessing Officer]: Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard: 4[Provided further that any application filed by the assessee in this sub-section on or after the 1st day of October, 1998, shall be accompanied by a fee of fifty rupees.] 5[(2A) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of four years from the end of the financial year in which such appeal is filed under sub-section (1) 6[or sub-section (2)] 7*** of section 253: 8[Provided that the Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under sub-section (1) of section 253, for a period not exceeding one hundred and eighty days from the date of such order and the Appellate Tribunal shall dispose of the appeal within the said period of stay specified in that order: Provided further that where such appeal is not so disposed of within the said period of stay as specified in the order of stay, the Appellate Tribunal may, on an application made in this behalf by the assessee and on being satisfied that the delay in disposing of the appeal is not attributable to the assessee, extend the period of stay, or pass an order of stay for a further period or periods as it thinks fit; so, however, that the aggregate of the period originally allowed and the period or periods so extended or allowed shall not, in any case, exceed three hundred and sixty-five days and the Appellate Tribunal shall dispose of the appeal within the period or periods of stay so extended or allowed: 9[Provided also that if such appeal is not so disposed of within the period allowed under the first proviso or the period or periods extended or allowed under the second proviso, which shall not, in any case, exceed three hundred and sixty-five days, the order of stay shall stand vacated after the expiry of such period or periods, even if the delay in disposing of the appeal is not attributable to the assessee.]] 1. Sub-section (1A) omitted by Act 45 of 1972, s. 3 (w.e.f. 1-1-1973). (2B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal.]
3. (3) The Appellate Tribunal shall send a copy of any orders passed under this section to the assessee and to the 1[2*** 3[Principal Commissioner or Commissioner]].
4. (4) 4[Save as provided in section 256 or section 260A], orders passed by the Appellate Tribunal on appeal shall be final.

² Subs. by Act 28 of 2016, s. 96, for “four years from the date of the order” (w.e.f. 1-6-2016).

³ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

⁴ Ins. by Act 21 of 1998, s. 53 (w.e.f. 1-10-1998).

⁵ Ins. by Act 27 of 1999, s. 86 (w.e.f. 1-6-1999). 6. Ins. by Act 10 of 2000, s. 68 (w.e.f. 1-6-2000). 7. The words, brackets, figure and letter “or sub-section (2A)” omitted by Act 28 of 2016, s. 96 (w.e.f. 1-6-2016).

⁸ Subs. by Act 22 of 2007, s. 75, for the provisos (w.e.f. 1-6-2007).

⁹ Subs. by Act 18 of 2008, s. 50, for the third proviso (w.e.f. 1-10-2008).

1. (1) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the President of the Appellate Tribunal from among the members thereof.
2. (2) Subject to the provisions contained in sub-section (3), a Bench shall consist of one judicial member and one accountant member.
3. (3) The President or any other member of the Appellate Tribunal authorised in this behalf by the Central Government may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member and which pertains to an assessee whose total income as computed by the 5[Assessing Officer] in the case does not exceed 6[fifty lakh rupees], and the President may, for the disposal of any particular case, constitute a Special Bench consisting of three or more members, one of whom shall necessarily be a judicial member and one an accountant member.
4. (4) If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President of the Appellate Tribunal for hearing on such point or points by one or more of the other members of the Appellate Tribunal, and such point or points shall be decided according to the opinion of the majority of the members of the Appellate Tribunal who have heard the case, including those who first heard it.
5. (5) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings.
6. (6) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the income-tax authorities referred to in section 131, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898). 2. The words “Chief Commissioner or” omitted by Act 49 of 1991, s. 67 (w.e.f. 27-9-1991). 4. The words, figures and letter shall stand substituted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule to read as “Save as provided in the National Tax Tribunal Act, 2005” (This amendment has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India.) Earlier “section 256 or section 260A” was substituted for “section 256” by Act 27 of 1999, s. 86 (w.e.f. 1-6-1999). 1[C. Reference to High Court

¹ Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988).

³ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 1-6-2013).

⁵ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

⁶ Subs. by Act 28 of 2016, s. 97, for “fifteen lakh rupees” (w.e.f. 1-6-2016).

1. (1) The assessee or the 2[Principal Commissioner or Commissioner] may, within sixty days of the date upon which he is served with notice of 3[an order passed before the 1st day of October, 1998, under section 254], by application in the prescribed form, accompanied where the application is made by the assessee by a fee of 4[two hundred rupees], require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court : Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days.
2. (2) If, on an application made under sub-section (1), the Appellate Tribunal refuses to state the case on the ground that no question of law arises, the assessee or the 2[Principal Commissioner or Commissioner], as the case may be, may, within six months from the date on which he is served with notice of such refusal, apply to the High Court, and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly. 5[(2A) The High Court may admit an application after the expiry of the period of six months referred to in sub-section (2), if it is satisfied that there was sufficient cause for not filing the same within that period.]
3. (3) Where in the exercise of its powers under sub-section (2), the Appellate Tribunal refuses to state a case which it has been required by the assessee to state, the assessee may, within thirty days from the date on which he receives notice of such refusal, withdraw his application, and, if he does so, the fee paid shall be refunded.]

If, on 6[an application made against an order made under section 254 before the 1st day of October, 1998, under section 256] the Appellate Tribunal is of the opinion that, on account of a conflict in the decisions of High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a statement of the case and refer it through its President direct to the Supreme Court.

If the High Court or the Supreme Court is not satisfied that the statements in a case referred to it are sufficient to enable it to determine the questions raised thereby, the Court may refer the case back to the Appellate Tribunal for the purpose of making such additions thereto or alterations therein as it may direct in that behalf.]

1. (1) When any case has been referred to the High Court under section 256, it shall be heard by a Bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such judges or of the majority, if any, of such judges.
2. (2) Where there is no such majority, the judges shall state the point of law upon which they differ, and the case shall then be heard upon that point only by one or more of the other judges of the High Court, and such point shall be decided according to the opinion of the majority of the judges who have heard the case including those who first heard it.] 1. Sub-heading “C. Reference to High Court” and section 256 shall stand omitted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule. 7. Section 258 shall stand omitted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule.

² Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 1-4-2013).

³ Subs. by Act 21 of 1998, s. 55, for “and order under section 254” (w.e.f. 1-10-1998).

⁴ Subs. by Act 16 of 1981, s. 20, for “one hundred and twenty-five rupees” (w.e.f. 1-6-1981).

⁵ Ins. by Act 14 of 2010, s. 48 (w.e.f. 1-6-2010).

⁶ Subs. by Act 21 of 1998, s. 56, for “an application made under Amendment section 256” (w.e.f. 1-10-1998).

1. (1) The High Court or the Supreme Court upon hearing any such case shall decide the questions of law raised therein, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and a copy of the judgment shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case conformably to such judgment. 2[(1A) Where the High Court delivers a judgment in an appeal filed before it under section 260A, effect shall be given to the order passed on the appeal by the Assessing Officer on the basis of a certified copy of the judgment.]
2. (2) The costs of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference shall be in the discretion of the Court.] 3[CC. —Appeals to High Court

1. (1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal 4[before the date of establishment of the National Tax Tribunal], if the High Court is satisfied that the case involves a substantial question of law.
2. (2) 5[The 6[Principal Chief Commissioner or Chief Commissioner] or the 7[Principal Commissioner or Commissioner] or an assessee aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court and such appeal under this sub-section shall be—]
   • (a) filed within one hundred and twenty days from the date on which the order appealed against is 8[received by the assessee or the 6[Principal Chief Commissioner or Chief Commissioner] or 7[Principal Commissioner or Commissioner];

9* (c) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved. 10[(2A) The High Court may admit an appeal after the expiry of the period of one hundred and twenty days referred to in clause (a) of sub-section (2), if it is satisfied that there was sufficient cause for not filing the same within that period.]

1. (3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
2. (4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. 1.The words in bracket shall stand inserted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule (This Amendment has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India). 4. The words in bracket shall stand inserted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule (This Amendment has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India). 9. Clause (b) omitted by s. 87, ibid. (w.e.f. 1-6-1999).
3. (5) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.
4. (6) The High Court may determine any issue which—
   • (a) has not been determined by the Appellate Tribunal; or
   • (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1). 1[(7) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.]

² Ins. by Act 21 of 1998, s. 57 (w.e.f. 1-10-1998).

³ Ins. by s. 58, ibid. (w.e.f. 1-10-1998).

⁵ Subs. by Act 27 of 1999, s. 87, for “An appeal under this sub-section shall be—” (w.e.f.1-6-1999).

⁶ Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.r.e.f. 1-6-2013).

⁷ Subs. by s. 4, ibid., for “Commissioner” (w.r.e.f .1-6-2013).

⁸ Subs. by Act 27 of 1999, s. 87, for “Communicated to the appellant” (w.e.f. 1-6-1999).

¹⁰ Ins. by Act 14 of 2010, s. 49 (w.r.e.f. 1-10-1998).

1. (1) When an appeal has been filed before the High Court under section 260A, it shall be heard by a bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges.
2. (2) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it.] D.—Appeals to the Supreme Court

An appeal shall lie to the Supreme Court from any judgment of the High Court 2[delivered 3[before the establishment of the National Tax Tribunal] on a reference made under section 256 against an order made under section 254 before the 1st day of October, 1998 or an appeal made to High Court in respect of an order passed under section 254 on or after that date] in any case which the High Court certifies to be a fit one for appeal to the Supreme Court.

1. (1) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under section 261 as they apply in the case of appeals from decrees of a High Court : Provided that nothing in this section shall be deemed to affect the provisions of sub-section (1) of section 260 or section 265.
2. (2) The costs of the appeal shall be in the discretion of the Supreme Court.
3. (3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 260 in the case of a judgment of the High Court. 3. The words in bracket shall stand inserted (date to be notified) by Act 49 of 2005, s. 30 and the ScheduleThis amendment has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India.). E.—Revision by the 1[Principal Commissioner or Commissioner]

¹ Ins. by Act 27 of 1999, s. 87 (w.e.f. 1-6-1999).

² Subs. by Act 21 of 1998, s. 59, for the words and figures “delivered on a reference made under section 256” (w.e.f. 1-10-1998).

1. (1) The 1[Principal Commissioner or Commissioner] may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the 2[Assessing Officer] is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. 3[4[Explanation 1.]—For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,—
   • (a) an order passed 5[on or before or after the 1st day of June, 1988] by the Assessing Officer shall include—
     • (i) an order of assessment made by the 6[Assistant Commissioner or Deputy Commissioner] or the Income-tax Officer on the basis of the directions issued by the 7[Joint Commissioner] under section 144A;
     • (ii) an order made by the 7[Joint Commissioner] in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the 8[Principal Chief Commissioner or Chief Commissioner] or 9[Principal Director General or Director General] or 1[Principal Commissioner or Commissioner] authorised by the Board in this behalf under section 120;
   • (b) “record”10[shall include and shall be deemed always to have included] all records relating to any proceeding under this Act available at the time of examination by the 1[Principal Commissioner or Commissioner];
   • (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal 5[filed on or before or after the 1st day of June, 1988], the powers of the 1[Principal Commissioner or Commissioner] under this sub-section shall extend 11[and shall be deemed always to have extended] to such matters as had not been considered and decided in such appeal.] 4. The Explanation numbered as Explanation 1 thereof by Act 20 of 2015, s. 67 (w.e.f. 1-6-2015). 1[Explanation 2.—For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Commissioner or Commissioner,—
   • (a) the order is passed without making inquiries or verification which should have been made;
   • (b) the order is passed allowing any relief without inquiring into the claim;
   • (c) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or
   • (d) the order has not been passed in accordance with any decision which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person.] 2[(2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed.]
2. (3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, 3[National Tax Tribunal,] the High Court or the Supreme Court. Explanation.—In computing the period of limitation for the purposes of sub-section (2), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. 264.Revision of other orders.—(1) In the case of any order other than an order to which section 263 applies passed by an authority subordinate to him, the 4[Principal Commissioner or Commissioner] may, either of his own motion or on an application by the assessee for revision, call for the record of any proceeding under this Act in which any such order has been passed and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit.
3. (2) The 4[Principal Commissioner or Commissioner] shall not of his own motion revise any order under this section if the order has been made more than one year previously. 3. The words in bracket shall stand inserted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule (This amendment has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India.).
4. (3) In the case of an application for revision under this section by the assessee, the application must be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier: Provided that the1[Principal Commissioner or Commissioner] may, if he is satisfied that the assessee was prevented by sufficient cause from making the application within that period, admit an application made after the expiry of that period.
5. (4) The 1[Principal Commissioner or Commissioner] shall not revise any order under this section in the following cases—
   • (a) where an appeal against the order lies to the 2[Deputy Commissioner (Appeals)]3[or to the Commissioner (Appeals)] or to the Appellate Tribunal but has not been made and the time within which such appeal may be made has not expired, or, in the case of an appeal 4[to the Commissioner (Appeals) or] to the Appellate Tribunal, the assessee has not waived his right of appeal; or
   • (b) where the order is pending on an appeal before the 2[Deputy Commissioner(Appeals)]; or
   • (c) where the order has been made the subject of an appeal 4[to the Commissioner (Appeals) or] to the Appellate Tribunal.
6. (5) Every application by an assessee for revision under this section shall be accompanied by 5[a fee of five hundred rupees]. 6[(6) On every application by an assessee for revision under this sub-section, made on or after the 1st day of October, 1998, an order shall be passed within one year from the end of the financial year in which such application is made by the assessee for revision. Explanation.—In computing the period of limitation for the purposes of this sub-section, the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.
7. (7) Notwithstanding anything contained in sub-section (6), an order in revision under sub-section (6) may be passed at any time in consequence of or to give effect to any finding or direction contained in an order of the Appellate Tribunal, 7[National Tax Tribunal,] the High Court or the Supreme Court.] 7. The words in bracket shall stand inserted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule (This amendment has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India.). Explanation 1.—An order by the 1[Principal Commissioner or Commissioner] declining to interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to the assessee. Explanation 2.—For the purposes of this section, the 2[Deputy Commissioner (Appeals)] shall be deemed to be an authority subordinate to the 1[Principal Commissioner or Commissioner]. F.—General

¹ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 1-6-2013).

² Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

³ Subs. by Act 26 of 1988, s. 44, for the Explanation (w.e.f. 1-6-1988).

⁵ Ins. by Act 13 of 1989, s. 23 (w.e.f. 1-6-1988).

⁶ Subs. by Act 21 of 1998, s. 3, for “Assistant Commissioner” (w.e.f. 1-10-1998).

⁷ Subs. by s. 3, ibid., for “Deputy Commissioner” (w.e.f. 1-10-1998).

⁸ Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013).

⁹ Subs. by s. 4, ibid., for “Director General” (w.e.f. 1-6-2013).

¹⁰ Subs. by Act 13 of 1989, s. 23, for “includes” (1-6-1988).

¹¹ Ins. by s. 23, ibid. (w.e.f. 1-6-1988).

¹ Ins. by Act 20 of 2015, s. 67 (w.e.f. 1-6-2015).

² Subs. by Act 67 of 1984, s. 47, for sub-section (2) (w.e.f. 1-10-1984).

⁴ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 1-6-2013).

¹ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 1-6-2013).

² Subs. by Act 4 of 1988, s. 2, for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).

³ Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978).

⁴ Ins. by s. 39 and the Fifth Schedule, ibid (w.e.f. 10-7-1978).

⁵ Subs. by Act 14 of 2001, s. 85, for “a fee of twenty-five rupees” (w.e.f. 1-6-2001).

⁶ Ins. by Act 21 of 1998, s. 60 (w.e.f. 1-10-1998).

F.—General

Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme Court, tax shall be payable in accordance with the assessment made in the case.

The High Court may, on petition made for the execution of the order of the Supreme Court in respect of any costs awarded thereby, transmit the order for execution to any court subordinate to the High Court.

Where as a result of an appeal under section 246 4[or section 246A] or section 253, any change is made in the assessment of a body of individuals or an association of persons or a new assessment of a body of individuals or an association of persons is ordered to be made, the 5*** Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorising the Assessing Officer either to amend the assessment made on any member of the body or association or make a fresh assessment on any member of the body or association.]

In computing the period of limitation prescribed for an appeal 6[or an application] under this Act, the day on which the order complained of was served and, if the assessee was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order, shall be excluded.

7[268A.Filing of appeal or application for reference by income-tax authority.—(1) The Board may, from time to time, issue orders, instructions or directions to other income-tax authorities, fixing such monetary limits as it may deem fit, for the purpose of regulating filing of appeal or application for reference by any income-tax authority under the provisions of this Chapter.

1. (2) Where, in pursuance of the orders, instructions or directions issued under sub-section (1), an income-tax authority has not filed any appeal or application for reference on any issue in the case of an assessee for any assessment year, it shall not preclude such authority from filing an appeal or application for reference on the same issue in the case of—
   • (a) the same assessee for any other assessment year; or
   • (b) any other assessee for the same or any other assessment year.
2. (3) Notwithstanding that no appeal or application for reference has been filed by an income-tax authority pursuant to the orders or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal or reference, to contend that the income-tax authority has acquiesced in the decision on the disputed issue by not filing an appeal or application for reference in any case.
3. (4) The Appellate Tribunal or Court, hearing such appeal or reference, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not filed in respect of any case.
4. (5) Every order, instruction or direction which has been issued by the Board fixing monetary limits for filing an appeal or application for reference shall be deemed to have been issued under sub-section (1) and the provisions of sub-sections (2), (3) and (4) shall apply accordingly.]

¹ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 1-6-2013).

² Subs. by Act 4 of 1988, s. 2, for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).

³ Ins. by Act 18 of 1992, s. 87 (w.e.f. 1-4-1993). 4. Ins. by Act 10 of 2000, s. 69 (w.e.f. 1-6-2000). 5. The words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, s. 65 (w.e.f. 1-10-1998).

⁶ Ins. by Act 12 of 1990, s. 42 (w.e.f. 1-4-1990).

⁷ Ins. by Act 18 of 2008, s. 51 (w.r.e.f. 1-4-1999).

In this Chapter,—

“High Court” means—

1. (i) in relation to any State, the High Court for that State; 1[(ii) in relation to the Union territory of Delhi, the High Court of Delhi;

2* ]

3*

1. (iv) in relation to the Union territory of the Andaman and Nicobar Islands, the High Court at Calcutta ;
2. (v) in relation to the Union territory of 4[Lakshadweep], the High Court of Kerala;] 5[(va) in relation to the Union territory of Chandigarh, the High Court of Punjab and Haryana; 6[(vi) in relation to the Union territories of Dadra and Nagar Haveli and 7*** Daman and Diu, the High Court at Bombay; and
3. (vii) in relation to the Union territory of Pondicherry, the High Court at Madras.] 2. Clause (iia) omitted by State of Himachal Pradesh (Adaptation of Laws on Union Subjects) Order, 1973 (w.r.e.f. 25-11971). 3. Clause (iii) omitted by Act 32 of 1994, s. 47 (w.e.f. 1-4-1995). 7. The word “Goa,” omitted by Act 32 of 994, s. 47 (w.e.f. 1-4-1995). 1[CHAPTER XXA ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER TO COUNTERACT EVASION OF TAX

¹ Subs. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) order, 1968, for clause (ii) (w.r.e.f. 1-11-1966).

⁴ Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, s. 3 and the Schedule, for “the Laccadive, Minicoy and Amindivi Islands” (w.r.e.f. 1-11-1973).

⁵ Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968 (w.r.e.f. 1-11-1966).

⁶ Ins. by Act 3 of 1963, s. 3(2) the Schedule (w.e.f. 1-4-1963).

In this Chapter, unless the context otherwise requires,—

1. (a) 2[“apparent consideration”,—

1. (1) in relation to any immovable property transferred, being immovable property of the nature referred to in sub-clause (i) of clause (e), means,—]
   • (i) if the transfer is by way of sale, the consideration for such transfer as specified in the instrument of transfer;
   • (ii) if the transfer is by way of exchange,—
   • (A) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer;
   • (B) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer and such sum; 3[(iii) if the transfer is by way of lease,—
   • (A) in a case where the consideration for the transfer consists of premium only, the amount of premium as specified in the instrument of transfer;
   • (B) in a case where the consideration for the transfer consists of rent only, the aggregate of the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer;
   • (C) in a case where the consideration for the transfer consists of premium and rent, the aggregate of the amount of the premium, the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such transfer, determined by adopting the rate of interest at eight per cent per annum; 1. Chapter XXA, consisting of sections 269A to 269S, ins. by Act 45 of 1972, s. 4, (w.e.f. 15-11-1972). 2. Subs, by Act 22 of 1981, s. 2, for “certain words” (w.e.f. 1-7-1982).
2. (2) in relation to any immovable property transferred, being immovable property of the nature referred to in sub-clause (ii) of clause (e), means,—
   • (i) in a case where the consideration for the transfer consists of a sum of money only, such sum;
   • (ii) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date of the transfer;
   • (iii) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date of the transfer and such sum, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such transfer, determined by adopting the rate of interest at eight per cent per annum.;]
   • (b) “competent authority” means 1[a 2[Joint] Commissioner] authorised by the Central Government under section 269B to perform the functions of a competent authority under this Chapter;
   • (c) “court” means a principal civil court of original jurisdiction unless the Central Government has appointed (as it is hereby authorised to do) any special judicial officer within any specified local limits to perform the functions of the court under this Chapter; 3[(d) “fair market value”,—
     • (i) in relation to any immovable property transferred by way of sale or exchange, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the price that the immovable property would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer of such property;
     • (ii) in relation to any immovable property transferred by way of lease, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the premium that such transfer would ordinarily fetch in the open market on the date of execution of the instrument of transfer of such property, if the consideration for such transfer had been by way of premium only;
     • (iii) in relation to any immovable property transferred, being immovable property of the nature referred to in sub-clause (ii) of clause (e), means the consideration in the form of money that such transfer would ordinarily fetch in the open market on the date of the transfer, if such transfer had been made only for consideration in money;]
   • (e) 4[“immovable property” means,—
     • (i) any land or any building] or part of a building, and includes, where any land or any building or part of a building is transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture, fittings or other things also. Explanation.—For the purposes of this 1[sub-clause], land, building, part of a building, machinery, plant, furniture, fittings and other things include any rights therein; 2[(ii) any rights of the nature referred to in clause (b) of sub-section (1) of section 269AB;] 3[(f) “instrument of transfer” means the instrument of transfer registered under the Registration Act, 1908 (16 of 1908), or, as the case may be, the statement registered under section 269AB with the competent authority;]
   • (g) “person interested”, in relation to any immovable property, includes all persons claiming, or entitled to claim, an interest in the compensation payable on account of the acquisition of that property under this Chapter ; 4[(h) “transfer”,—
     • (i) in relation to any immovable property referred to in sub-clause (i) of clause (e), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882). Explanation.—For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years if the aggregate of the term for which such lease has been granted and the further term or terms for which it can be so extended is not less than twelve years ;
     • (ii) in relation to any immovable property of the nature referred to in sub-clause (ii) of clause (e), means the doing of anything (whether by way of transfer of shares in a co-operative society or company or by way of any agreement or arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, such property.]

³ Ins. by s. 2, ibid, (w.e.f. 1-7-1982).

¹ Subs. by Act 3 of 1989, s. 48, for “an Assistant Commissioner of Income-tax” (w.e.f. 1-4-1988).

² Subs. by Act 21 of 1998, s. 3, for “Deputy Commissioner” (w.e.f. 1-10-1998).

³ Subs. by Act 22 of 1981, s. 2, for clause (d) (w.e.f. 1-7-1982).

⁴ Subs. by s. 2, ibid., for “Immovable property means any land or any building” (w.e.f. 1-7-1982).

1. (1) Where the competent authority has reason to believe that any immovable property of a fair market value exceeding 4[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. (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).

¹ Subs. by Act 3 of 1989, s. 49, for “Assistant Commissioners of Income-tax” (w.r.e.f. 1-4-1988).

² Subs. by Act 21 of 1998, s. 3, for “Deputy Commissioners” (w.e.f. 1-10-1998).

³ Ins. by Act 22 of 1981, s. 4 (w.e.f. 1-7-1982).

⁴ Subs. by Act 21 of 1984, s. 25, for “twenty-five thousand rupees” (w.e.f. 1-6-1984).

1. (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 1[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), 2[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 1[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. (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. 1[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.]

¹ Subs. by Act 66 of 1973, s. 2, for “six month” (w.r.e.f. 15-11-1972).

² Ins. by Act 22 of 1981, s. 5 (w.e.f. 1-7-1982).

1. (1) Objections against the acquisition of the immovable property in respect of which a notice has been published in the Official Gazette under sub-section (1) of section 269D may be made—
   • (a) by the transferor or the transferee or any other person referred to in clause (a) of sub-section (2) of that section, within a period of forty-five days from the date of such publication or a period of thirty days from the date of service of notice on such person under the said clause, whichever period expires later;
   • (b) by any other person interested in such immovable property, within forty-five days from the date of such publication.
2. (2) Every objection under sub-section (1) shall be made to the competent authority in writing.
3. (3) For the removal of doubts, it is hereby declared that objection may be made under sub-section (1) that the provisions of clause (a) of sub-section (2) of section 269C do not apply in relation to any immovable property on the ground that the fair market value of such property does not exceed the apparent consideration therefor by more than twenty-five per cent of such apparent consideration.

¹ Ins. by Act 22 of 1981, s. 5 (w.e.f. 1-7-1982).

1. (1) The competent authority shall fix a day and place for the hearing of the objections made under section 269E against the acquisition under this Chapter of any immovable property, and shall give notice of the same to every person who has made such objection : Provided that such notice shall also be given to the transferee of such property even if he has not made any such objection.
2. (2) Every person to whom a notice is given under sub-section (1) shall have the right to be heard at the hearing of the objections.
3. (3) The competent authority shall have the power to adjourn the hearing of the objections from time to time.
4. (4) The competent authority may, before disposing of the objections, make such further inquiry as he thinks fit.
5. (5) The decision of the competent authority in respect of the objections heard shall be in writing and shall state the reasons for the decision with respect to each objection.
6. (6) If after hearing the objections, if any, and after taking into account all the relevant material on record, the competent authority is satisfied that,—
   • (a) the immovable property to which the proceedings relate is of a fair market value exceeding 1[one hundred thousand rupees];
   • (b) the fair market value of such property exceeds the apparent consideration therefor by more than fifteen per cent of such apparent consideration ; and
   • (c) 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
7. (1) of section 269C, he may, after obtaining the approval of the 2[Principal Commissioner or Commissioner], make an order for the acquisition of the property under this Chapter. Explanation.—In this sub-section, 2[Principal Commissioner or Commissioner], in relation to a competent authority, means such 2[Principal Commissioner or Commissioner] as the Board may, by general or special order in writing, specify in this behalf.
8. (7) If the competent authority is not satisfied as provided in sub-section (6), he shall, by order in writing, declare that the property will not be acquired under this Chapter.
9. (8) The competent authority shall serve a copy of his order under sub-section (6) or sub-section (7), as the case may be, on the transferor, the transferee and on every person who has made objections against such acquisition under section 269E.
10. (9) In any proceedings under this Chapter in respect of any immovable property, no objection shall be entertained on the ground that although the apparent consideration for the property is less than the fair market value of the property on the 1[date of the execution of the instrument of transfer or where such property is of the nature referred to in sub-clause (ii) of clause (e) of section 269A on the date of the transfer], the consideration as agreed to between the parties has been truly stated in the instrument of transfer because such consideration was agreed to having regard to the price that such property would have ordinarily fetched 2[on such transfer in the open market on the date of the conclusion of the agreement to transfer the property], except where such agreement has been registered under the Registration Act, 1908 (16 of 1908).

¹ Subs. by Act 21 of 1984, s. 26, for “twenty-five thousand rupees” (w.e.f. 1-6-1984).

² Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).

1. (1) An appeal may be preferred to the Appellate Tribunal against the order for the acquisition of any immovable property made by the competent authority under section 269F,—
   • (a) by the transferor or the transferee or any other person referred to in sub-section (8) of that section, within a period of forty-five days from the date of such order or a period of thirty days from the date of service of a copy of the order on such person under the said sub-section, whichever period expires later;
   • (b) by any other person interested in such immovable property, within forty-five days from the date of such order: Provided that the Appellate Tribunal may, on an application made in this behalf before the expiry of the said period of forty-five days or, as the case may be, thirty days, permit, by order, the appeal to be presented within such further period as may be specified therein if the applicant satisfies the Appellate Tribunal that he has sufficient cause for not being able to present the appeal within the said period of forty-five days or, as the case may be, thirty days.
2. (2) Every appeal under this section shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of 3[two hundred rupees].
3. (3) The Appellate Tribunal shall fix a day and place for the hearing of the appeal and shall give notice of the same to the appellant and to the competent authority.
4. (4) The Appellate Tribunal may, after giving the appellant and the competent authority an opportunity of being heard, pass such orders thereon as it thinks fit.
5. (5) The Appellate Tribunal may, at any time within thirty days from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (4) and shall make such amendment if the mistake is brought to its notice by the appellant or the competent authority: Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person a reasonable opportunity of being heard.
6. (6) The Appellate Tribunal shall send a copy of any orders passed under this section to the appellant and to the 4[Principal Commissioner or Commissioner].
7. (7) Save as provided in section 269H, orders passed by the Appellate Tribunal on appeal shall be final.
8. (8) Every appeal under this section shall be disposed of as expeditiously as possible and endeavour shall be made to dispose of every such appeal within ninety days from the date on which it is presented.
9. (9) The provisions of section 255 (except sub-section (3) thereof) shall, so far as may be, apply in relation to the powers, functions and proceedings of the Appellate Tribunal under this section as they apply in relation to the powers, functions and proceedings of the Appellate Tribunal under Chapter XX.

¹ Subs. by Act 22 of 1981, s. 6, for “date of execution of the instrument of transfer” (w.e.f. 1-7-1982).

² Subs. by s. 6, ibid., for “on sale in the open market on the date of the conclusion of the agreement to sell the property” (w.e.f. 1-7-1982).

³ Subs. by Act 16 of 1981, s. 21, for “one hundred and twenty-five rupees” (w.e.f. 1-6-1981).

⁴ Subs. by Act 25 of 2014, s. 4, for “commissioner” (w.r.e.f. 1-6-2013).

1. (1) The 1[Principal Commissioner or Commissioner] or any person aggrieved by any order of the Appellate Tribunal under section 269G may, within sixty days of the date on which he is served with notice of such order under that section, prefer an appeal against such order to the High Court on any question of law : Provided that the High Court may, on an application made in this behalf before the expiry of the said period of sixty days, permit, by order, the appeal to be presented within such further period as may be specified therein, if the applicant satisfies the High Court that he has sufficient cause for not being able to present the appeal within the said period of sixty days.
2. (2) An appeal under sub-section (1) shall be heard by a Bench of not less than two Judges of the High Court and the provisions of section 259 shall apply in relation to any such appeal as they apply in relation to a case referred to the High Court under section 256.
3. (3) The costs of the appeal shall be in the discretion of the High Court. 269-I. Vesting of property in Central Government.—(1) As soon as may be after the order for acquisition of any immovable property made undersub-section (6) of section 269F becomes final, the competent authority may, by notice in writing, order any person who may be in possession of the immovable property to surrender or deliver possession thereof to the competent authority or any other person duly authorised in writing by the competent authority in this behalf, within thirty days of the date of the service of the notice. Explanation.—For the purposes of this sub-section, an order for the acquisition of any immovable property (hereafter in this Explanation referred to as the order for acquisition) made under sub-section (6) of section 269F becomes final,—
   • (a) in a case where the order for acquisition is not made the subject of an appeal to the Appellate Tribunal under section 269G, upon the expiry of the period during which such appeal may be presented under that section;
   • (b) in a case where the order for acquisition is made the subject of an appeal to the Appellate Tribunal under section 269G,—
     • (i) if the order for acquisition is confirmed by the Appellate Tribunal and the order of the Appellate Tribunal is not made the subject of an appeal to the High Court under section 269H, upon the expiry of the period during which such appeal may be presented under that section to the High Court;
     • (ii) if the order of the Appellate Tribunal is made the subject of an appeal to the High Court under section 269H, upon the confirmation of the order for acquisition by the High Court.
4. (2) If any person refuses or fails to comply with the notice under sub-section (1), the competent authority or other person duly authorised by the competent authority under that sub-section may take possession of the immovable property and may, for that purpose, use such force as may be necessary.
5. (3) Notwithstanding anything contained in sub-section (2), the competent authority may, for the purpose of taking possession of any property referred to in sub-section (1), requisition the services of any police officer to assist him and it shall be the duty of such officer to comply with such requisition.
6. (4) When the possession of the immovable property is surrendered or delivered under sub-section (1) to the competent authority or a person duly authorised by him in that behalf or, as the case may be, when the possession thereof is taken under sub-section (2) or sub-section (3) by such authority or person, the property shall vest absolutely in the Central Government free from all encumbrances: Provided that nothing in this sub-section shall operate to discharge the transferee or any other person (not being the Central Government) from liability in respect of such encumbrances and, notwithstanding anything contained in any other law, such liability may be enforced against the transferee or such other person by a suit for damages. 1[(5) Notwithstanding anything contained in sub-section (4) or any other law or any instrument or any agreement for the time being in force, where an order for acquisition of any immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section 269AB, in or with respect to any building or part of a building which has been constructed or which is to be constructed, has become final, then, such order shall, by its own force, have the effect of—
   • (a) vesting such rights in the Central Government, and
   • (b) placing the Central Government in the same position in relation to such rights as the person in whom such rights would have continued to vest if such order had not become final, and the competent authority may issue such directions as he may deem fit to any person concerned for taking the necessary steps for compliance with the provisions of clauses (a) and (b).]
7. (6) In the case of any immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section 269AB, in or with respect to any building or part of a building, the provisions of sub-sections (1), (2) and (3) shall have effect as if the references to immovable property therein were a reference to such building or, as the case may be, part of such building.]

¹ Subs. by Act 25 of 2014, s. 4, for “commissioner” (w.r.e.f. 1-6-2013).

1. (1) Where any immovable property is acquired under this Chapter, the Central Government shall pay for such acquisition compensation which shall be a sum equal to the aggregate of the amount of the apparent consideration for its transfer and fifteen per cent of the said amount: 2[Provided that in a case where, under the agreement between the parties concerned, the whole or any part of the consideration for the transfer of such immovable property is payable on any date or dates falling after the date on which such property is acquired, the compensation payable by the Central Government shall be the aggregate of the following amounts, namely:—
   • (i) an amount equal to fifteen per cent of the apparent consideration;
   • (ii) the amount, if any, that has become payable in accordance with such agreement on or before the date on which such property is acquired under this Chapter ; and
   • (iii) the amount payable after the date on which such property is acquired under this Chapter.]
2. (2) Notwithstanding anything contained in sub-section (1),—
   • (a) where, after the transfer to the transferee of the property referred to in that sub-section but before the vesting of the property in the Central Government, the property has been damaged (otherwise than as a result of normal wear and tear), the compensation payable under that sub-section shall be reduced by such amount as the competent authority and the persons entitled to the compensation may agree within fifteen days of the vesting of the property in the Central Government or in default of such agreement as the court may, on a reference made to it in this behalf by the competent authority or by any person duly authorised for the purpose by the competent authority, determine to be the amount that may have to be expended for restoring the property to the condition in which it was at the time of such transfer ;
   • (b) where, after the transfer of such property to the transferee but before the date of publication in the Official Gazette of the notice in respect of such property under sub-section (1) of section 269D, any improvements have been made to the property, whether by way of addition or alteration or in any other manner, the compensation payable in respect of such property under sub-section (1) shall be increased by such amount as the competent authority and the persons entitled to the compensation may agree within fifteen days of the vesting of the property in the Central Government or in default of such agreement as the court may, on a reference made to it in this behalf by the competent authority or by any person duly authorised for the purpose by the competent authority, determine to be the amount spent for making such improvements.
3. (3) Every reference under clause (a) or clause (b) of sub-section (2) shall be made within thirty days of the date on which the immovable property to which it relates becomes vested in the Central Government or within such further period as the court may, on an application made in this behalf before the expiry of the said period and on being satisfied that there is sufficient cause for doing so, allow and such reference shall state clearly the compensation payable under sub-section (1) in respect of the immovable property and the amount by which, according to the estimate of the competent authority, such compensation shall be reduced under clause (a) or, as the case may be, increased under clause (b), of sub-section (2).
4. (4) The amount by which the compensation payable under sub-section (1) in respect of any immovable property acquired under this Chapter falls short of the amount which would have been payable as compensation if that property had been acquired under the Land Acquisition Act, 1894 (1 of 1894), after the issue of a preliminary notice under section 4 of that Act on the date of publication in the Official Gazette of the notice in respect of the property under sub-section (1) of section 269D, shall be deemed to have been realised by the Central Government as a penalty from the transferee for being a party to a transfer with such object as is referred to in clause (a) or clause (b) of sub-section (1) of section 269C, and no penalty shall be levied for any assessment year on the transferee—
   • (a) under clause (iii) of sub-section (1) of section 271, for concealing the particulars or furnishing inaccurate particulars of so much of his income as is utilised by him for paying to the transferor, by way of consideration for the property, any amount in excess of the apparent consideration for the property, notwithstanding that such amount is included in the income of the transferee;
   • (b) under clause (iii) of sub-section (1) of section 18 of the Wealth-tax Act, 1957 (27 of 1957), for concealing the particulars or furnishing inaccurate particulars of so much of his assets as are utilised by him for paying to the transferor, by way of consideration for the property, any amount in excess of the apparent consideration for the property, notwithstanding that such assets are included in the net wealth of the transferee.

¹ Ins. by Act 22 of 1981, s. 7 (w.e.f. 1-7-1982).

² Ins. by s. 8 ibid. (w.e.f. 1-7-1982).

1. (1) The amount of compensation payable in accordance with the provisions of section 269J for the acquisition of any immovable property shall be tendered to the person or persons entitled thereto, as soon as may be, after the property becomes vested in the Central Government under sub-section (4) of section 269-I: 1[Provided that in a case falling under the proviso to sub-section (1) of section 269J, the amounts referred to in clause (i) and clause (ii) of that proviso shall be tendered to the person or persons entitled thereto, as soon as may be, after the property becomes vested in the Central Government under section 269-I, and the amount referred to in clause (iii) of the said proviso shall be tendered on the date on which it would be payable in accordance with the agreement between the parties concerned, and where such amount is payable in instalments on different dates, then in such instalments on those dates: Provided further that] in any case where a reference is or has to be made under sub-section (2) of section 269J to the court for the determination of the amount by which the compensation payable under sub-section (1) of that section shall be reduced or increased, the amount of such compensation as reduced or increased by the amount estimated in that behalf by the competent authority for the purposes of such reference shall be tendered as aforesaid.
2. (2) Notwithstanding anything contained in sub-section (1), if any dispute arises as to the apportionment of the compensation amongst persons claiming to be entitled thereto, the Central Government shall deposit in the court the compensation required to be tendered under sub-section (1) and refer such dispute for the decision of the court and the decision of the court thereon shall be final.
3. (3) Notwithstanding anything contained in sub-section (1), if the persons entitled to compensation do not consent to receive it, or if there is no person competent to alienate the immovable property, or if there is any dispute as to the title to receive the compensation, the Central Government shall deposit in the court the compensation required to be tendered under sub-section (1) and refer the matter for the decision of the court: Provided that nothing herein contained shall affect the liability of any person who may receive the whole or any part of the compensation for any immovable property acquired under this Chapter to pay the same to the person lawfully entitled thereto.
4. (4) If the Central Government fails to tender under sub-section (1) or deposit under sub-section (2) or sub-section (3) the whole or any part of the compensation required to be tendered or deposited thereunder within thirty days of the date on which the immovable property to which the compensation relates becomes vested in the Central Government under sub-section (4) of section 269-I, the Central Government shall be liable to pay simple interest at the rate of 2[fifteen per cent per.] annum reckoned from the day immediately following the date of expiry of the said period up to the date on which it so tenders or deposits such compensation or, as the case may be, such part of the compensation.
5. (5) Where any amount of compensation (including interest, if any, thereon) has been deposited in the court under this section, the court may, either of its own motion or on an application made by or on behalf of any party interested or claiming to be interested in such amount, order the same to be invested in such Government or other securities as it may think proper, and may direct the interest or other proceeds of any such investment to be accumulated and paid in such manner as will, in its opinion, give the parties interested therein the same benefit therefrom as they might have had from the immovable property in respect whereof such amount has been deposited or as near thereto as may be.

1. (1) The competent authority may,—
   • (a) for the purpose of initiating proceedings for the acquisition of any immovable property under section 269C or for the purpose of making an order under section 269F in respect of any immovable property, require a Valuation Officer to determine the fair market value of such property and report the same to him;
   • (b) for the purpose of estimating the amount by which the compensation payable under subsection (1) of section 269J in respect of any immovable property may be reduced or, as the case may be, increased under clause (a) or clause (b) of sub-section (2) of that section, require the Valuation Officer to make such estimate and report the same to him.
2. (2) The Valuation Officer to whom a reference is made under clause (a) or clause (b) of sub-section
3. (1) shall, for the purpose of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957).
4. (3) If in an appeal under section 269G against the order for acquisition of any immovable property, the fair market value of such property is in dispute, the Appellate Tribunal shall, on a request being made in this behalf by the competent authority, give an opportunity of being heard to any Valuation Officer nominated for the purpose by the competent authority. Explanation.—In this section, “Valuation Officer” has the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).

¹ Subs. by Act 22 of 1981, s. 9, for “Provided that” (w.e.f. 1-7-1982).

² Subs. by Act 67 of 1984, s. 24, for “twelve per cent.” (w.e.f. 1-10-1984).

The competent authority shall have, for the purposes of this Chapter, all the powers that a 1[Principal Commissioner or Commissioner] has, for the purposes of this Act, under section 131.

With a view to rectifying any mistake apparent from the record, the competent authority may amend any order made by him under this Chapter at any time before the time for presenting an appeal against such order has expired, either on his own motion or on the mistake being brought to his notice by any person affected by the order:

Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person a reasonable opportunity of being heard.

269-O. Appearance by authorised representative or registered valuer.—Any person who is entitled or required to attend before a competent authority or the Appellate Tribunal in any proceeding under this Chapter, otherwise than when required to attend personally for examination on oath or affirmation, may attend—

1. (a) by an authorised representative in connection with any matter;
2. (b) by a registered valuer in connection with any matter relating to the valuation of any immovable property for the purposes of this Chapter or the estimation of the amount by which the compensation payable under sub-section (1) of section 269J for the acquisition of any immovable property may be reduced or, as the case may be, increased in accordance with the provisions of clause (a) or clause (b) of sub-section (2) of that section. Explanation.—In this section,—
   • (i) “authorised representative” has the(b) by a registered valuer in connection with any matter relating to the valuation of any immovable property for the purposes of this Chapter or the estimation of the amount by which the compensation payable under sub-section (1) of section 269J for the acquisition of any immovable property may be reduced or, as the case may be, increased in accordance with the provisions of clause (a) or clause (b) of sub-section (2) of that section. Explanation.—In this section,(i) “authorised representative” has the same meaning as in section 288;
   • (ii) “registered valuer” has the same meaning as in clause (oaa) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).

¹ Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).

1. (1) Notwithstanding anything contained in any other law for the time being in force, no registering officer appointed under the Registration Act, 1908 (16 of 1908), shall register any document which purports to transfer any immovable property belonging to any person unless a statement in duplicate in respect of such transfer, in the prescribed form and verified in the prescribed manner and setting forth such particulars as may be prescribed, is furnished to him along with the instrument of transfer : 1[Provided that the provisions of this sub-section shall not apply in relation to any document which purports to transfer any immovable property for an apparent consideration not exceeding 2[fifty thousand rupees]. Explanation.—For the purposes of this proviso, “apparent consideration” shall have the meaning assigned to it in clause (a) of section 269A subject to the modifications that for the expressions “immovable property transferred” and “instrument of transfer” occurring in that clause, the expressions “immovable property purported to be transferred” and “document purporting to transfer such immovable property” shall, respectively, be substituted.]
2. (2) The registering officer shall, at the end of every fortnight, forward to the competent authority,—
   • (a) one set of the statements received by him under sub-section (1) during the fortnight ; and
   • (b) a return in the prescribed form and verified in the prescribed manner and setting forth such particulars as may be prescribed in respect of documents of the nature referred to in sub-section (1) which have been registered by him during the fortnight.

The provisions of this Chapter shall not apply to or in relation to any transfer of immovable property made by a person to his relative on account of natural love and affection for a consideration which is less than its fair market value if a recital to that effect is made in the instrument of transfer.

Notwithstanding anything contained in the Land Acquisition Act, 1894 (1 of 1894), or any corresponding law for the time being in force, no immovable property referred to in section 269C shall be acquired for any purpose of the Union under that Act or such law unless the time for initiation of proceedings for the acquisition of such property under this Chapter has expired without such proceedings having been initiated or unless the competent authority has declared that such property will not be acquired under this Chapter.

The provisions of this Chapter shall not extend to the State of Jammu and Kashmir.

¹ Ins. by Act 66 of 1973, s. 2 (w.e.f. 1-1-1974).

² Subs. by Act 21 of 1984, s. 27, for “ten thousand rupees” (w.e.f. 1-6-1984).

³ Ins. by Act 23 of 1986, s. 33 (w.e.f. 1-10-1986).

1[CHAPTER XXB REQUIREMENT AS TO 2[MODE OF ACCEPTANCE, PAYMENT OR REPAYMENT] IN CERTAIN CASES TO COUNTERACT EVASION OF TAX

3[269SS.Mode of taking or accepting certain loans, deposits and specified sum.—No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, if,—

1. (a) the amount of such loan or deposit or specified sum or the aggregate amount of such loan, deposit and specified sum; or
2. (b) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or specified sum taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or
3. (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more: Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by,—
4. (a) the Government;
5. (b) any banking company, post office savings bank or co-operative bank;
6. (c) any corporation established by a Central, State or Provincial Act;
7. (d) any Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);
8. (e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette: Provided further that the provisions of this section shall not apply to any loan or deposit or specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted and the person by whom the loan or deposit or specified sum is taken or accepted, are both having agricultural income and neither of them has any income chargeable to tax under this Act. Explanation.—For the purposes of this section,—
   • (i) “banking company” means a company to which the provisions of the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act;
   • (ii) “co-operative bank” shall have the same meaning as assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949);
   • (iii) “loan or deposit” means loan or deposit of money;
   • (iv) “specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.]

¹ Ins. by Act 38 of 1981, s. 2 (w.e.f. 11-7-1981).

² Subs. by Act 21 of 1984, s. 28, for “MODE OF REPAYMENT” (w.e.f. 1-4-1984).

³ Subs. by Act 20 of 2015, s. 68, for section 269SS (w.e.f. 1-6-2015).

The provisions of this Chapter shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different areas.

1. (1) The following transactions, that is to say,—
   • (a) every transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882), and
   • (b) every transaction (whether by way of becoming a member of, or acquiring shares in, a cooperative society, company or other association of persons or by way of any agreement or any arrangement of whatever nature) whereby a person acquires any rights in or with respect to any building or part of a building (whether or not including any machinery, plant, furniture, fittings or other things therein) which has been constructed or which is to be constructed (not being a transaction by way of sale, exchange or lease of such building or part of a building which is required to be registered under the Registration Act, 1908 (16 of 1908)), shall be reduced to writing in the form of a statement by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties.
2. (2) Every statement in respect of a transaction referred to in sub-section (1) shall(a) be in the prescribed form;
   • (b) set forth such particulars as may be prescribed ; and (c) be verified in the prescribed manner, and registered with the competent authority, in such manner and within such time as may be prescribed, by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties.] 269B.Competent authority.—(1) The Central Government may, by general or special order published in the Official Gazette,
   • (a) authorise as many 1[ 2[Joint Commissioners], as it thinks fit, to perform the functions of a competent authority under this Chapter ; and
   • (b) define the local limits within which the competent authorities shall perform their functions under this Chapter.
3. (2) In respect of any function to be performed by a competent authority under any provision of this Chapter in relation to any immovable property referred to in section 269C, the competent authority referred to therein shall,—
   • (a) in a case where such property is situate within the local limits of the jurisdiction of only one competent authority, be such competent authority ;
   • (b) in a case where such property is situate within the local limits of the jurisdiction of two or more competent authorities, be the competent authority empowered to perform such functions in relation to such property in accordance with rules made in this behalf by the Board under section 295. 3[Explanation.—For the purposes of this sub-section, immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section 269AB in, or with respect to, any building or part of a building which has been constructed or which is to be constructed shall be deemed to be situate at the place where the building has been constructed or is to be constructed.]
4. (3) No person shall be entitled to call in question the jurisdiction of a competent authority in respect of any immovable property after the expiry of thirty days from the date on which such competent authority initiates proceedings under section 269D for the acquisition of such property.
5. (4) Subject to the provisions of sub-section (3), where the jurisdiction of a competent authority is questioned, the competent authority shall, if satisfied with the correctness of the claim, by order in writing, determine the question accordingly and if he is not so satisfied, he shall refer the question to the Board and the Board shall, by order in writing, determine the question.

¹ Subs. by Act 22 of 1981, s. 2, for “this clause” (w.e.f. 1-7-1982).

² Ins. by s. 2, ibid. (w.e.f. 1-7-1982).

³ Subs. by s. 2, ibid., for clause (f) (w.e.f. 1-7-1982).

⁴ Subs. by s. 2, ibid, for clause (h) (w.e.f. 1-7-1982).

⁵ Ins. by s. 3,ibid. (w.e.f. 1-7-1982).

The provisions of this Chapter shall not apply to or in relation to the transfer of any immovable property made after the 30th day of September, 1986.]

No person shall receive an amount of two lakh rupees or more(a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:

Provided that the provisions of this section shall not apply to—

1. (i) any receipt by(a) Government; (b) any banking company, post office savings bank or co-operative bank;
2. (ii) transactions of the nature referred to in section 269SS; (iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify. Explanation.—For the purposes of this section,—

1. (a) “banking company” shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;
2. (b) “co-operative bank” shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.] 2[269T.Mode of repayment of certain loans or deposits.—No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it 3[or any specified advance received by it] otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit 3[or paid the specified advance,] 4[or by use of electronic clearing system through a bank account] if—
3. (a) the amount of the loan or deposit 3[or specified advance] together with the interest, if any, payable thereon, or
4. (b) the aggregate amount of the loans or deposits held by such person with the branch of the banking company or co-operative bank or, as the case may be, the other company or co-operative society or the firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loans or deposits, 3[or] 3[(c) the aggregate amount of the specified advances received by such person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such specified advances,] is twenty thousand rupees or more: Provided that where the repayment is by a branch of a banking company or co-operative bank, such repayment may also be made by crediting the amount of such loan or deposit to the savings bank account or the current account (if any) with such branch of the person to whom such loan or deposit has to be repaid: 1[Provided further that nothing contained in this section shall apply to repayment of any loan or deposit 2[or specified advance] taken or accepted from—
   • (i) Government;
   • (ii) any banking company, post office savings bank or co-operative bank;
   • (iii) any corporation established by a Central, State or Provincial Act;
   • (iv) any Government companyas defined in section 617 of the Companies Act, 1956 (1 of 1956);
   • (v) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette.] Explanation.—For the purposes of this section,—
   • (i) “banking company” shall have the meaning assigned to it in clause (i) of the Explanation to section 269SS;
   • (ii) “co-operative bank” shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949);
   • (iii) “loan or deposit” means any loan or deposit of money which is repayable after notice or repayable after a period and, in the case of a person other than a company, includes loan or deposit of any nature;]] 2[(iv) “specified advance” means any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not the transfer takes place.] 3[269TT.Mode of repayment of Special Bearer Bonds, 1991.—Notwithstanding anything contained in any other law for the time being in force, the amount payable on redemption of Special Bearer Bonds, 1991, shall be paid only by an account payee cheque or account payee bank draft drawn in the name of the person to whom such payment is to be made.] 1[CHAPTER XXC PURCHASE BY CENTRAL GOVERNMENT OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER

¹ Ins. by Act 7 of 2017, s. 84 (w.e.f. 1-4-2017).

² Subs. by Act 20 of 2002, s. 99, for section 269T (w.e.f. 1-6-2002).

³ Ins. by Act 20 of 2015, s. 69 (w.e.f. 1-6-2015). 4. Ins. by Act 25 of 2014, s. 69 (w.e.f. 1-4-2015).

¹ Ins. by Act 32 of 2003, s. 94 (w.e.f. 1-6-2002).

² Ins. by Act 20 of 2015, s. 69 (w.e.f. 1-6-2015).

³ Ins. by Act 38 of 1981, s. 3 (w.e.f. 19-9-1981).

In this Chapter, unless the context otherwise requires,—

1. (a) “agreement for transfer” means an agreement, whether registered under the Registration Act, 1908 (16 of 1908) or not, for the transfer of any immovable property ;
2. (b) “apparent consideration”,—

1. (1) in relation to any immovable property in respect of which an agreement for transfer is made, being immovable property of the nature referred to in sub-clause (i) of clause (d), means,—
   • (i) if the immovable property is to be transferred by way of sale, the consideration for such transfer as specified in the agreement for transfer;
   • (ii) if the immovable property is to be transferred by way of exchange,(A) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date on which the agreement for transfer is made;
   • (B) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date on which the agreement for transfer is made, and such sum;
     • (iii) if the immovable property is to be transferred by way of lease,—
   • (A) in a case where the consideration for the transfer consists of premium only, the amount of premium as specified in the agreement for transfer;
   • (B) in a case where the consideration for the transfer consists of rent only, the aggregate of the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the agreement for transfer;
   • (C) in a case where the consideration for the transfer consists of premium and rent, the aggregate of the amount of the premium, the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the agreement for transfer, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such agreement for transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such agreement for transfer, determined by adopting such rate of interest as may be prescribed in this behalf;
2. (2) in relation to any immovable property in respect of which an agreement for transfer is made, being immovable property of the nature referred to in sub-clause (ii) of clause (d), means,—
   • (i) in a case where the consideration for the transfer consists of a sum of money only, such sum;
   • (ii) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date on which the agreement for transfer is made;
   • (iii) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date on which the agreement for transfer is made, and such sum, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such agreement for transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such agreement for transfer, determined by adopting such rate of interest as may be prescribed in this behalf;
   • (c) “appropriate authority” means an authority constituted under section 269UB to perform the functions of an appropriate authority under this Chapter;
   • (d) “immovable property” means—
     • (i) any land or any building or part of a building, and includes, where any land or any building or part of a building is to be transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture, fittings or other things also. Explanation.—For the purposes of this sub-clause, “land, building, part of a building, machinery, plant, furniture, fittings and other things” include any rights therein;
     • (ii) any rights in or with respect to any land or any building or a part of a building (whether or not including any machinery, plant, furniture, fittings or other things therein) which has been constructed or which is to be constructed, accruing or arising from any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement of whatever nature), not being a transaction by way of sale, exchange or lease of such land, building or part of a building;
   • (e) “person interested”, in relation to any immovable property, includes all persons claiming, or entitled to claim, an interest in the consideration payable on account of the vesting of that property in the Central Government under this Chapter;
   • (f) “transfer”,—
     • (i) in relation to any immovable property referred to in sub-clause (i) of clause (d), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882). Explanation.—For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years, if the aggregate of the term for which such lease is to be granted and the further term or terms for which it can be so extended is not less than twelve years;
     • (ii) in relation to any immovable property of the nature referred to in sub-clause (ii) of clause (d), means the doing of anything (whether by way of admitting as a member of or by way of transfer of shares in a co-operative society or company or other association of persons or by way of any agreement or arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, such property.

¹ Ins. by Act 23 of 1986, s. 34 (w.e.f. 13-5-1986).

1. (1) The Central Government may, by order, publish in the Official Gazette,—
   • (a) constitute as many appropriate authorities, as it thinks fit, to perform the functions of an appropriate authority under this Chapter; and
   • (b) define the local limits within which the appropriate authorities shall perform their functions under this Chapter.
2. (2) An appropriate authority shall consist of three persons, two of whom shall be members of the Indian Income-tax Service, Group A, holding the post of Commissioner of Income-tax or any equivalent or higher post, and one shall be a member of the Central Engineering Service, Group A, holding the post of Chief Engineer or any equivalent or higher post.
3. (3) In respect of any function to be performed by an appropriate authority under any provision of this Chapter in relation to any immovable property referred to in section 269UC, the appropriate authority referred to therein shall,—
   • (a) in a case where such property is situate within the local limits of the jurisdiction of only one appropriate authority, be such appropriate authority;
   • (b) in a case where such property is situate within the local limits of the jurisdiction of two or more appropriate authorities, be the appropriate authority empowered to perform such functions in relation to such property in accordance with the rules made in this behalf by the Board under section 295. Explanation.—For the purposes of this sub-section, immovable property being rights of the nature referred to in sub-clause (ii) of clause (d) of section 269UA in, or with respect to, any land or any building or part of a building which has been constructed or which is to be constructed shall be deemed to be situate at the place where the land is situate or, as the case may be, where the building has been constructed or is to be constructed. 269UC.Restrictions on transfer of immovable property.—(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882), or in any other law for the time being in force, 1[no transfer of any immovable property in such area and of such value exceeding five lakh rupees, as may be prescribed], shall be effected except after an agreement for transfer is entered into between the person who intends transferring the immovable property (hereinafter referred to as the transferor) and the person to whom it is proposed to be transferred (hereinafter referred to as the transferee) in accordance with the provisions of sub-section (2) at least 2[four months] before the intended date of transfer.
4. (2) The agreement referred to in sub-section (1) shall be reduced to writing in the form of a statement by each of the parties to such transfer or by any of the parties to such transfer acting on behalf of himself and on behalf of the other parties.
5. (3) Every statement referred to in sub-section (2) shall,—
   • (i) be in the prescribed form;
   • (ii) set forth such particulars as may be prescribed; and
   • (iii) be verified in the prescribed manner, and shall be furnished to the appropriate authority in such manner and within such time as may be prescribed, by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties. 3[(4) Where it is found that the statement referred to in sub-section (2) is defective, the appropriate authority may intimate the defect to the parties concerned and give them an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the appropriate authority may, in its discretion, allow and if the defect is not rectified within the said period of fifteen days, or as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Chapter, the statement shall be deemed never to have been furnished.]

¹ Subs. by Act 22 of 1995, s. 46, for “ no transfer of any immovable property of such value exceeding five lakh rupees as may be prescribed” (w.e.f. 1-7-1995).

² Subs. by Act 38 of 1993, s. 33, for “three months” (w.e.f. 1-6-1993).

³ Ins. by Act 22 of 1995, s. 46 (w.e.f. 1-7-1995).

1. (1) 1[Subject to the provisions of sub-sections (1A) and (1B), the appropriate authority], after the receipt of the statement under sub-section (3) of section 269UC in respect of any immovable property, may, notwithstanding anything contained in any other law or any instrument or any agreement for the time being in force, 2*** make an order for the purchase by the Central Government of such immovable property at an amount equal to the amount of apparent consideration: Provided that no such order shall be made in respect of any immovable property after the expiration of a period of two months from the end of the month in which the statement referred to in section 269UC in respect of such property is received by the appropriate authority: 3[Provided further that where the statement referred to in section 269UC in respect of any immovable property is received by the appropriate authority on or after the 1st day of June, 1993, the provisions of the first proviso shall have effect as if for the words “two months”, the words “three months” had been substituted:] 4[Provided also that the period of limitation referred to in the second proviso shall be reckoned, where any defect as referred to in sub-section (4) of section 269UC has been intimated, with reference to the date of receipt of the rectified statement by the appropriate authority:] 5[Provided also] that in a case where the statement referred to in section 269UC in respect of the immovable property concerned is given to an appropriate authority, other than the appropriate authority having jurisdiction in accordance with the provisions of section 269UB to make the order referred to in this sub-section in relation to the immovable property concerned, the period of limitation referred to in6[the first and second provisos] shall be reckoned with reference to the date of receipt of the statement by the appropriate authority having jurisdiction to make the order under this sub-section: 7[Provided also that the period of limitation referred to in the second proviso shall be reckoned, where any stay has been granted by any court against the passing of an order for the purchase of the immovable property under this Chapter, with reference to the date of vacation of the said stay.] 8[(1A) Before making an order under sub-section (1), the appropriate authority shall give a reasonable opportunity of being heard to the transferor, the person in occupation of the immovable property if the transferor is not in occupation of the property, the transferee and to every other person whom the appropriate authority knows to be interested in the property. (1B) Every order made by the appropriate authority under sub-section (1) shall specify the grounds on which it is made.]
2. (2) The appropriate authority shall cause a copy of its order under sub-section (1) in respect of any immovable property to be served on the transferor, the person in occupation of the immovable property if the transferor is not in occupation thereof, the transferee, and on every other person whom the appropriate authority knows to be interested in the property. 2. The words “and for reasons to be recorded in writing” omitted by s. 34, ibid. (w.e.f. 17-11-1992).

¹ Subs. by Act 38 of 1993, s. 34, for “The appropriate authority” (w.e.f. 17-11-1992).

³ Ins. by s. 34, ibid. (w.e.f. 1-6-1993).

⁴ Ins. by Act 22 of 1995, s. 47 (w.e.f. 1-7-1995).

⁵ Subs. by Act 38 of 1993, s. 34, for “Provided further” (w.e.f. 1-6-1993).

⁶ Subs. by s. 34, ibid., for “the preceding proviso” (w.e.f. 1-6-1993).

⁷ Ins. by s. 34, ibid. (w.e.f. 1-6-1993).

⁸ Ins. by s. 34, ibid. (w.r.e.f. 17-11-1992).

1. (1) Where an order under sub-section (1) of section 269UD is made by the appropriate authority in respect of an immovable property referred to in sub-clause (i) of clause (d) of section 269UA, such property shall, on the date of such order, vest in the Central Government 1[in terms of the agreement for transfer referred to in sub-section (1) of section 269UC]: 2[Provided that where the appropriate authority, after giving an opportunity of being heard to the transferor, the transferee or other persons interested in the said property, under sub-section (1A) of section 269UD, is of the opinion that any encumbrance on the property or leasehold interest specified in the aforesaid agreement for transfer is so specified with a view to defeat the provisions of this Chapter, it may, by order, declare such encumbrance or leasehold interest to be void and thereupon the aforesaid property shall vest in the Central Government free from such encumbrance or leasehold interest.]
2. (2) The transferor or any other person who may be in possession of the immovable property in respect of which an order under sub-section (1) of section 269UD is made, shall surrender or deliver possession thereof to the appropriate authority or any other person duly authorised by the appropriate authority in this behalf within fifteen days of the service of such order on him: 2[Provided that the provisions of this sub-section and sub-sections (3) and (4) shall not apply where the person in possession of the immovable property, in respect of which an order under sub-section (1) of section 269UD is made, is a bona fide holder of any encumbrance on such property or a bona fide lessee of such property, if the said encumbrance or lease has not been declared void under the proviso to sub-section (1) and such person is eligible to continue in possession of such property even after the transfer in terms of the aforesaid agreement for transfer.]
3. (3) If any person refuses or fails to comply with the provisions of sub-section (2), the appropriate authority or other person duly authorised by it under that sub-section may take possession of the immovable property and may, for that purpose, use such force as may be necessary.
4. (4) Notwithstanding anything contained in sub-section (2), the appropriate authority may, for the purpose of taking possession of any property referred to in sub-section (1), requisition the services of any police officer to assist him and it shall be the duty of such officer to comply with such requisition.
5. (5) For the removal of doubts, it is hereby declared that nothing in this section shall operate to discharge the transferor or any other person (not being the Central Government) from liability in respect of any encumbrances on the property and, notwithstanding anything contained in any other law for the time being in force, such liability may be enforced against the transferor or such other person.
6. (6) Where an order under sub-section (1) of section 269UD is made in respect of an immovable property, being rights of the nature referred to in sub-clause (ii) of clause (d) of section 269UA, such order shall have the effect of—
   • (a) vesting such right in the Central Government ; and (b) placing the Central Government in the same position in relation to such rights as the person in whom such a right would have continued to vest if such order had not been made.
7. (7) Where any rights in respect of any immovable property, being rights in, or with respect to, any land or any building or part of a building which has been constructed or which is to be constructed, have been vested in the Central Government under sub-section (6), the provisions of sub-sections (1), (2), (3) and (4) shall, so far as may be, have effect as if the references to immovable property therein were references to such land or building or part thereof, as the case may be.

¹ Subs. by Act 38 of 1993, s. 35, for “free from all encumbrances” (w.e.f. 17-11-1992).

² Ins. by s. 35, ibid. (w.e.f. 17-11-1992).

1. (1) Where an order for the purchase of any immovable property by the Central Government is made under sub-section (1) of section 269UD, the Central Government shall pay, by way of consideration for such purchase, an amount equal to the amount of the apparent consideration.
2. (2) Notwithstanding anything contained in sub-section (1), where, after the agreement for the transfer of the immovable property referred to in that sub-section has been made but before the property vests in the Central Government under section 269UE, the property has been damaged (otherwise than as a result of normal wear and tear), the amount of the consideration payable under that sub-section shall be reduced by such sum as the appropriate authority, for reasons to be recorded in writing, may by order determine.

1. (1) The amount of consideration payable in accordance with the provisions of section 269UF shall be tendered to the person or persons entitled thereto, within a period of one month from the end of the month in which the immovable property concerned becomes vested in the Central Government under sub-section (1), or, as the case may be, subsection (6), of section 269UE: Provided that if any liability for any tax or any other sum remaining payable under this Act, the Wealth-tax Act, 1957 (27 of 1957), the Gift-tax Act, 1958 (18 of 1958), the Estate Duty Act, 1953 (34 of 1953), or the Companies (Profits) Surtax Act, 1964 (7 of 1964), by any person entitled to the consideration payable under section 269UF, the appropriate authority may, in lieu of the payment of the amount of consideration, set off the amount of consideration or any part thereof against such liability or sum, after giving an intimation in this behalf to the person entitled to the consideration.
2. (2) Notwithstanding anything contained in sub-section (1), if any dispute arises as to the apportionment of the amount of consideration amongst persons claiming to be entitled thereto, the Central Government shall deposit with the appropriate authority the amount of consideration required to be tendered under sub-section (1) within the period specified therein.
3. (3) Notwithstanding anything contained in sub-section (1), if the person entitled to the amount of consideration does not consent to receive it, or if there is any dispute as to the title to receive the amount of consideration, the Central Government shall deposit with the appropriate authority the amount of consideration required to be tendered under sub-section (1) within the period specified therein: Provided that nothing herein contained shall affect the liability of any person who may receive the whole or any part of the amount of consideration for any immovable property vested in the Central Government under this Chapter to pay the same to the person lawfully entitled thereto.
4. (4) Where any amount of consideration has been deposited with the appropriate authority under this section, the appropriate authority may, either of its own motion or on an application made by or on behalf of any person interested or claiming to be interested in such amount, order the same to be invested in such Government or other securities as it may think proper, and may direct the interest or other proceeds of any such investment to be accumulated and paid in such manner as will, in its opinion, give the parties interested therein the same benefits therefrom as they might have had from the immovable property in respect whereof such amount has been deposited or as near thereto as may be.

1. (1) If the Central Government fails to tender under sub-section (1) of section 269UG or deposit under sub-section (2) or sub-section (3) of the said section, the whole or any part of the amount of consideration required to be tendered or deposited thereunder within the period specified therein in respect of any immovable property which has vested in the Central Government under sub-section (1) or, as the case may be, sub-section (6) of section 269UE, the order to purchase the immovable property by the Central Government made under sub-section (1) of section 269UD shall stand abrogated and the immovable property shall stand re-vested in the transferor after the expiry of the aforesaid period: Provided that where any dispute referred to in sub-section (2) or sub-section (3) of section 269UG is pending in any court for decision, the time taken by the court to pass a final order under the said sub-sections shall be excluded in computing the said period.
2. (2) Where an order made under sub-section (1) of section 269UD is abrogated and the immovable property re-vested in the transferor under sub-section (1), the appropriate authority shall make, as soon as may be, a declaration in writing to this effect and shall—
   • (a) deliver a copy of the declaration to the persons mentioned in sub-section (2) of section 269UD; and
   • (b) deliver or cause to be delivered possession of the immovable property back to the transferor, or, as the case may be, to such other person as was in possession of the property at the time of its vesting in the Central Government under section 269UE.

The appropriate authority shall have, for the purposes of this Chapter, all the powers that a 1[2[Principal Chief Commissioner or Chief Commissioner] or 3[Principal Commissioner or Commissioner]] of Income-tax has for the purposes of this Act under section 131.

With a view to rectifying any mistake apparent from the record, the appropriate authority may amend any order made by it under this Chapter, either on its own motion or on the mistake being brought to its notice by any person affected by the order:

Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person a reasonable opportunity of being heard:

Provided further that no amendment shall be made under this section after the expiry of six months from the end of the month in which the order sought to be amended was made.

1. (1) Notwithstanding anything contained in any other law for the time being in force, no person shall revoke or alter an agreement for the transfer of an immovable property or transfer such property in respect of which a statement has been furnished under section 269UC unless,—
   • (a) the appropriate authority has not made an order for the purchase of the immovable property by the Central Government under section 269UD and the period specified for the making of such order has expired; or
   • (b) in a case where an order for the purchase of the immovable property by the Central Government has been made under sub-section (1) of section 269UD, the order stands abrogated under sub-section (1) of section 269UH.
2. (2) Any transfer of any immovable property made in contravention of the provisions of sub-section (1) shall be void.

¹ Subs. by Act 4 of 1988, s. 2 for “Commissioner” (w.e.f. 1-4-1988).

² Subs. by Act 25 of 2014, s. 4 for “Chief Commissioner” (w.e.f. 1-6-2013).

³ Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

1. (1) Notwithstanding anything contained in any other law for the time being in force, no registering officer appointed under the Registration Act, 1908 (16 of 1908), shall register any document which purports to transfer immovable property exceeding the value prescribed under section 269UC unless a certificate from the appropriate authority that it has no objection to the transfer of such property for an amount equal to the apparent consideration therefor as stated in the agreement for transfer of the immovable property in respect of which it has received a statement under sub-section (3) of section 269UC, is furnished along with such document.
2. (2) Notwithstanding anything contained in any other law for the time being in force, no person shall do anything or omit to do anything which will have the effect of transfer of any immovable property unless the appropriate authority certifies that it has no objection to the transfer of such property for an amount equal to the apparent consideration therefor as stated in the agreement for transfer of the immovable property in respect of which it has received a statement under sub-section (3) of section 269UC.
3. (3) In a case where the appropriate authority does not make an order under sub-section (1) of section 269UD for the purchase by the Central Government of an immovable property, or where the order made under sub-section (1) of section 269UD stands abrogated under sub-section (1) of section 269UH, the appropriate authority shall issue a certificate of no objection referred to in sub-section (1) or, as the case may be, sub-section (2) and deliver copies thereof to the transferor and the transferee.

Notwithstanding anything contained in any other law or in any instrument or any agreement for the time being in force, when an order for the purchase of any immovable property by the Central Government is made under this Chapter, no claim by the transferee shall lie against the transferor by reason of such transfer being not in accordance with the agreement for the transfer of the immovable property entered into between the transferor and transferee:

Provided that nothing contained in this section shall apply if the order for the purchase of the immovable property by the Central Government is abrogated under sub-section (1) of section 269UH.

Save as otherwise provided in this Chapter, any order made under sub-section (1) of section 269UD or any order made under sub-section (2) of section 269UF shall be final and conclusive and shall not be called in question in any proceeding under this Act or under any other law for the time being in force.

The provisions of this Chapter shall not apply to or in relation to any immovable property where the agreement for transfer of such property is made by a person to his relative on account of natural love and affection, if a recital to that effect is made in the agreement for transfer.

The provisions of this Chapter shall not apply to, or in relation to, the transfer of any immovable property effected on or after the 1st day of July, 2002.]

¹ Ins. by Act 20 of 2002, s. 100 (w.e.f. 1-7-2002).