Income-tax Act, 1961 / Chapter XXA / Historical provision
Section 269F: Hearing of Objections to Acquisition of Immovable Property
Section 269F laid down how the competent authority heard and decided objections to acquisition proceedings under the former Chapter XXA property-acquisition regime, including procedural safeguards and the conditions for ordering acquisition.
What Section 269F provided
The provision followed the objection stage under Section 269E. The competent authority had to notify objectors and the transferee of the hearing, permit them to be heard, consider relevant material and issue a reasoned written decision. An acquisition order required the specified findings and approval of the Principal Commissioner or Commissioner.
Section 269F - Statutory provisions
The following preserves the substance and wording of the supplied historical text, with formatting and obvious source footnote markers separated for readability.
Section 269F(1) - Notice of hearing
(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.
Section 269F(2) - Right to be heard
(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.
Section 269F(3) - Adjournment of hearing
(3) The competent authority shall have the power to adjourn the hearing of the objections from time to time.
Section 269F(4) - Further inquiry
(4) The competent authority may, before disposing of the objections, make such further inquiry as he thinks fit.
Section 269F(5) - Written reasoned decision
(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.
Section 269F(6) - Conditions for acquisition order
(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 (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.
Section 269F(7) - Order declining acquisition
(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.
Section 269F(8) - Service of acquisition decision
(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.
Section 269F(9) - Restriction concerning earlier agreement value
(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 3 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 4 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).
How the historical hearing process worked
Hearing and notice: Under subsections (1) and (2), objectors and the transferee were entitled to notice and an opportunity to be heard. Subsections (3) and (4) allowed adjournments and additional inquiry.
Written reasons: Subsection (5) required a written decision setting out reasons for each objection. Under subsection (8), copies of the final order had to be served on the transferor, transferee and objectors.
Conditions for acquisition: Under subsection (6), the authority had to be satisfied that the property's fair market value exceeded Rs. 1,00,000, exceeded apparent consideration by more than 15%, and that consideration had not been truly stated for a purpose specified in Section 269C(1). Approval of the Principal Commissioner or Commissioner was required before making an acquisition order. If those conditions were not established, subsection (7) required an order that the property would not be acquired.
Earlier agreement price: Subsection (9) restricted certain objections based on an earlier agreed price, subject to the statutory exception for a registered agreement. This restriction must be read in its historical context and with the precise statutory language above.
Historical legislative amendment notes
- Finance Act, 1984 (Act 21 of 1984), section 26, substituted Rs. 1,00,000 for Rs. 25,000 with effect from 1 June 1984.
- Finance (No. 2) Act, 2014 (Act 25 of 2014), section 4, substituted "Principal Commissioner or Commissioner" for "Commissioner" retrospectively from 1 June 2013.
- Finance Act, 1981 (Act 22 of 1981), section 6, amended subsection (9) with effect from 1 July 1982, including the date-of-transfer and market-price language.
Official legal resources
Consult the Income Tax Department, the India Code legislative database, and the Gazette of India for statutory texts, amendment instruments and notifications. For historical cases, verify the version of the Act applicable to the relevant transfer date.
This article provides general legal information and is not a substitute for professional advice on a specific dispute.