Section 269L - Assistance by Valuation Officers
Section 269L deals with valuation assistance in historical proceedings for the acquisition of immovable property under Chapter XX-A of the Income-tax Act, 1961. It specifies when a competent authority may obtain a Valuation Officer's report, the officer's statutory powers and participation in valuation-related appeals.
Section 269L explained: scope and operation
269L(1)(a) - Valuation for acquisition proceedings
The competent authority may ask a Valuation Officer to determine and report the fair market value of immovable property when considering initiation of acquisition proceedings under section 269C or an acquisition order under section 269F.
269L(1)(b) - Estimation of compensation adjustments
A Valuation Officer may be asked to estimate and report the reduction or increase in compensation contemplated by section 269J(2), including damage or improvements.
269L(2) - Statutory valuation powers
For such references, the Valuation Officer has the powers provided by section 38A of the Wealth-tax Act, 1957. This is a historical cross-reference retained in the provision.
269L(3) - Valuation Officer at appeal
Where fair market value is disputed in an appeal under section 269G, the Appellate Tribunal must, upon the competent authority's request, afford a hearing to a Valuation Officer nominated by that authority.
Explanation - Meaning of Valuation Officer
The expression has the meaning assigned by section 2(r) of the Wealth-tax Act, 1957.
Text of Section 269L - Assistance by Valuation Officers
(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 sub-section (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) The Valuation Officer to whom a reference is made under clause (a) or clause (b) of sub-section (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).
(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).
Important expressions and related provisions
Competent authority: The authority exercising acquisition functions under Chapter XX-A, particularly section 269B.
Fair market value: The value of immovable property relevant to the Chapter XX-A acquisition framework; the statutory definitions and valuation context must be read with section 269A.
Valuation Officer: As expressly provided in the Explanation to section 269L, this term takes its meaning from section 2(r) of the Wealth-tax Act, 1957.
Sections 269C and 269F: Concern the initiation of acquisition proceedings and the order following consideration of objections, respectively.
Sections 269G and 269J: Deal with appeals against acquisition orders and compensation for acquisition, respectively.
Wealth-tax Act references: Sections 2(r) and 38A are retained because section 269L expressly incorporates them. They should be read in their historical statutory context, not as an assertion that wealth tax continues to apply generally.
Practical significance
For a legacy Chapter XX-A dispute, a valuation report may be material to whether acquisition proceedings were justified, the amount of compensation or an appeal involving fair market value. Section 269L(3) does not create an unrestricted right for every Valuation Officer to appear: the hearing opportunity arises upon the competent authority's request where fair market value is in dispute.
For a current transfer, the applicable valuation and taxation provisions must be identified separately; section 269L alone is not a basis for initiating acquisition proceedings.
Official legislation and reference material
Read Section 269L - Income Tax Department, Section 269RR - applicability cut-off, and the Income-tax Act, 1961 - India Code. These official sources should be consulted for authoritative statutory wording and amendments.
Legal information: This article explains the provision and does not replace advice on a particular acquisition or valuation dispute. Updated 28 October 2026.