Income-tax Act, 1961 | Chapter XX-A | Historical provision

Section 269R: Properties Liable for Acquisition Not to Be Acquired Under Other Laws

Section 269R established a priority rule between the acquisition mechanism in Chapter XX-A of the Income-tax Act, 1961 and acquisition for Union purposes under the Land Acquisition Act, 1894 or a corresponding law. Its practical operation must be understood in its historical statutory setting.

Important applicability note: Under Section 269RR, Chapter XX-A does not apply to transfers of immovable property made after 30 September 1986. Section 269R is therefore not a general restriction on present-day government land acquisition. The Land Acquisition Act, 1894 referenced in the provision was subsequently replaced by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, subject to applicable transitional provisions.

Text of Section 269R

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.

Meaning and purpose of Section 269R

The provision coordinated two distinct statutory routes for acquisition of immovable property. Where a property fell within Section 269C, the Union could not proceed to acquire that property under the Land Acquisition Act, 1894 or a corresponding law until one of the statutory conditions was satisfied.

When acquisition under another law was permitted

Expiry of the initiation period: The period for initiating acquisition proceedings under Chapter XX-A expired without any such proceedings being initiated.
Decision not to acquire: The competent authority declared that the property would not be acquired under Chapter XX-A.

The wording did not permanently prohibit acquisition for Union purposes. It postponed the alternative acquisition route until the Chapter XX-A position was resolved in one of the specified ways.

Definitions and connected legal provisions

Section 269C - Immovable property liable to acquisition

Section 269C was the Chapter XX-A provision governing initiation of acquisition proceedings concerning certain transfers of immovable property where the prescribed statutory conditions were met. Section 269R referred to property falling within that provision rather than to all land or buildings generally.

Competent authority

In the Chapter XX-A context, the competent authority was the income-tax authority designated to administer acquisition proceedings under that Chapter. Its declaration that the property would not be acquired was one of the alternatives expressly recognised by Section 269R.

Land Acquisition Act, 1894 and the 2013 legislation

The reference to the Land Acquisition Act, 1894 is part of the historical wording of Section 269R and should not be read as a statement that the 1894 Act is the ordinary governing acquisition statute today. The 2013 land acquisition legislation established a later statutory framework, with its own scope and transitional rules.

Section 269RR - Cut-off for Chapter XX-A

Section 269RR limits Chapter XX-A by reference to transfers made after 30 September 1986. For a current property acquisition question, the applicable land acquisition law and the facts of the particular proceedings must be examined independently.

Illustration of the historical rule

Suppose an immovable property transfer fell within the former Section 269C acquisition procedure. If the statutory time to initiate Chapter XX-A proceedings had not yet expired and the competent authority had not declared that it would refrain from acquisition, Section 269R restricted acquisition of that property for Union purposes under the other specified acquisition law. Once either statutory condition was satisfied, Section 269R no longer imposed that particular restriction.

Present-day legal relevance

Section 269R remains relevant when interpreting historical Chapter XX-A proceedings and older legal records. It should not be used as a standalone basis for challenging or authorising a modern land acquisition. The applicable enactment, commencement and saving provisions, and any pending proceedings must be considered separately.

Official legislative resources

For authoritative legislation and amendments, consult India Code, the Income Tax Department, and the Legislative Department, Government of India. Check the relevant version and commencement date when reviewing a historical transaction.

This article explains the historical statutory provision for general information. It is not a substitute for advice on an individual property or acquisition proceeding.