Section 269U: Commencement of Chapter XX-C
Section 269U explains how the former compulsory-purchase regime for specified immovable property transfers was brought into operation through notifications issued by the Central Government.
Section 269U: Statutory provision
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.
Legislative note: Section 269U was inserted by the Finance Act, 1986 (Act 23 of 1986), section 34, with effect from 13 May 1986. The provision empowers notified commencement; the insertion date should not be confused with the commencement date notified for a particular area.
Meaning and operation of Section 269U
1. Government notification is necessary
Section 269U did not itself specify one nationwide operational date for every locality. Instead, the Central Government was authorised to appoint commencement dates by publishing notifications in the Official Gazette. A historical case therefore requires checking the notification relevant to the location and date of the transaction.
2. Different dates for different areas
The provision expressly allowed phased implementation. Chapter XX-C could commence in one notified area before another, so it is not safe to assume uniform geographical applicability at every point in time.
3. Commencement is distinct from substantive conditions
Section 269U determines when the Chapter could operate in a particular area. Whether a specific property transfer was covered also depended on other Chapter XX-C provisions, including the definitions in Section 269UA, the statement requirements in Section 269UC, and the rules governing purchase orders in Section 269UD.
Important legal terms
Chapter XX-C
The former statutory framework in the Income-tax Act for advance scrutiny and possible purchase by the Central Government of certain immovable properties in specified circumstances. Its application to transfers effected on or after 1 July 2002 is excluded by Section 269UP.
Central Government
The Union Government of India, authorised under Section 269U to issue notifications appointing commencement dates.
Official Gazette
The formal government publication through which statutory notifications are issued. The relevant Gazette notification provides authoritative evidence of an appointed commencement date.
Immovable property and transfer
For purposes of Chapter XX-C, these expressions had special statutory meanings under Section 269UA. The definitions should be examined rather than assuming that only ordinary registered sales were covered.
Commencement and later statutory cutoff
Section 269U was introduced by the Finance Act, 1986. The Central Government could subsequently activate Chapter XX-C for different areas through Gazette notifications. The Finance Act, 2002 introduced Section 269UP, providing that the Chapter would not apply to or in relation to property transfers effected on or after 1 July 2002.
This cutoff does not, by itself, determine the outcome of proceedings relating to earlier transactions. For an older transfer, the applicable notification, transaction date, statutory thresholds, procedural requirements, and subsequent legal developments may still matter.
Practical illustration
Suppose a property transfer was proposed in an area during a period when Chapter XX-C was being implemented. To determine whether the Chapter applied, the parties would first need to establish the Gazette-notified commencement date for that area. They would then examine the nature and value of the proposed transfer and the other requirements of Chapter XX-C.
By contrast, a transfer effected in 2026 is not subject to Chapter XX-C merely because Section 269U remains printed in the historical text of the Income-tax Act. Section 269UP excludes such transfers. Other applicable tax, registration, stamp-duty and property laws remain separate questions.
Frequently asked questions
What does Section 269U provide?
It authorises the Central Government to bring Chapter XX-C into force by notification in the Official Gazette and permits different commencement dates for different areas.
Did Chapter XX-C commence everywhere on the same date?
Not necessarily. Section 269U expressly allowed the Central Government to appoint different commencement dates for different areas through Gazette notifications.
Does Chapter XX-C apply to property transfers after 1 July 2002?
No. Section 269UP states that Chapter XX-C does not apply to or in relation to transfers of immovable property effected on or after 1 July 2002.
Is Section 269U the same as Section 269UP?
No. Section 269U governs the historical commencement of Chapter XX-C; Section 269UP limits its application to transfers effected before 1 July 2002.
Official legal sources and related provisions
- India Code - official central legislation database (consult the Income-tax Act, 1961 and relevant amending Acts).
- Income Tax Department - Income-tax Act.
- Section 269UA - Definitions.
- Section 269UB - Appropriate authority.
- Section 269UP - Transfers effected on or after 1 July 2002.
Editorial note: This page explains a historical provision and is general legal information, not advice on an individual transaction. For older matters, verify the relevant Gazette notification and statutory text applicable at the material time.