Income-tax Act, 1961 | Chapter XX-C

Section 269UB of the Income-tax Act, 1961: Appropriate Authority

Section 269UB describes how the Central Government could constitute an appropriate authority, who served on it, and which authority had jurisdiction over immovable property under Chapter XX-C. This Chapter historically governed certain purchases of immovable property by the Central Government.

Current applicability: Section 269UP provides that Chapter XX-C does not apply to transfers of immovable property effected on or after 1 July 2002. Accordingly, section 269UB is relevant principally to the historical scheme and legacy matters, not as a current pre-clearance requirement for ordinary property transfers. Read official section 269UP.

Meaning of appropriate authority

Under section 269UA(c), an appropriate authority means an authority constituted under section 269UB to perform the functions assigned by Chapter XX-C. It was a statutory decision-making body, rather than the local property registration office.

Section 269UB: Explanation of each subsection

Subsection (1): Constitution and territorial limits

The Central Government was empowered, by an order published in the Official Gazette, to (a) constitute as many appropriate authorities as it considered fit to carry out functions under Chapter XX-C; and (b) specify the local limits within which each authority could exercise those functions.

In practical terms, this provision established the authority and its geographical jurisdiction.

Subsection (2): Composition of the authority

Each appropriate authority was required to consist of three persons: two members of the Indian Income-tax Service, Group A, each holding the post of Commissioner of Income-tax or an equivalent or higher post; and one member of the Central Engineering Service, Group A, holding the post of Chief Engineer or an equivalent or higher post.

The structure combined senior income-tax administration with technical engineering expertise for property-related decisions.

Subsection (3): Which authority had jurisdiction?

For immovable property referred to in section 269UC, jurisdiction depended on location:

Property within one authority's limits: that appropriate authority exercised the relevant functions.
Property within two or more authorities' limits: the authority designated under rules made by the Central Board of Direct Taxes under section 295 exercised those functions.

Explanation to subsection (3): Where the property consisted of rights described in section 269UA(d)(ii) in or relating to land or a building (including a building to be constructed), the rights were deemed situated where the land was located or the building stood or was proposed to be constructed.

Relationship with other provisions of Chapter XX-C

Section 269UA defined key expressions, including immovable property and appropriate authority. Section 269UC dealt with the historical restrictions and statement requirements for certain transfers. Section 269UD concerned orders for purchase by the Central Government. These provisions must be read subject to section 269UP's cutoff date.

Does section 269UB apply to property sales today?

No, not as a Chapter XX-C approval mechanism for transfers effected on or after 1 July 2002. This does not remove other potentially applicable registration, stamp-duty, tax-deduction, capital-gains or reporting obligations. Those must be evaluated under the law applicable to the transaction.

Official statutory references

Editorial note: This article explains the historical statutory scheme and its express non-application to later transfers. Specific legacy disputes may require examination of the law and orders applicable at the relevant time.