(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 :
1 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) 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) 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
subsection (2).
(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.
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1. Ins. by s. 8 ibid. (w.e.f. 1-7-1982).
Section 269AB Registration of certain transactions
Section 269B Competent authority
Section 269C Immovable property in respect of which proceedings for acquisition may be taken
Section 269D Preliminary notice
Section 269F Hearing of objections
Section 269G Appeal against order for acquisition
Section 269H Appeal to High Court