Income-tax Act, 1961 | Chapter XX-C

Section 269UI: Powers of the Appropriate Authority

Section 269UI of the Income-tax Act, 1961 conferred specified investigative and procedural powers on the appropriate authority for the purposes of Chapter XX-C, which governed the Central Government's pre-emptive purchase of certain immovable properties. The provision refers to the powers available under Section 131 of the Act.

Important applicability note: Section 269UP provides that Chapter XX-C does not apply to transfers of immovable property effected on or after 1 July 2002. Section 269UI is therefore principally relevant to historical proceedings and legacy disputes; it is not a current pre-clearance requirement for ordinary property transfers.

What does Section 269UI provide?

The statutory rule provides that, for the purposes of Chapter XX-C, the appropriate authority has all the powers that a Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner of Income-tax has under Section 131 of the Income-tax Act, 1961. This is a specific statutory conferral of powers: the authority could use those powers only in connection with its functions under that Chapter and subject to applicable law.

What are the powers under Section 131?

Section 131 concerns powers regarding discovery, production of evidence and related inquiries. In the context of Section 269UI, the cross-reference broadly covered the following powers, comparable to certain powers of a civil court under the Code of Civil Procedure, 1908:

Discovery and inspection: requiring disclosure and examination of relevant material.
Attendance and examination on oath: enforcing attendance and examining persons under oath.
Production of records: compelling production of books of account and other documents.
Commissions: issuing commissions where authorized for examination or other evidentiary purposes.

The exact scope, conditions and safeguards are governed by the relevant version of Section 131 and the facts of the proceeding. Section 269UI did not itself create an unlimited power to acquire property.

Important legal terms

Appropriate authority: The authority constituted for Chapter XX-C under Section 269UB to exercise powers assigned under that Chapter.
Immovable property: A term defined for the purposes of Chapter XX-C in Section 269UA, covering specified land, buildings and certain related rights.
Chapter XX-C: The historical statutory framework governing pre-emptive purchase of specified immovable properties by the Central Government.
Section 131: The provision addressing specified powers of income-tax authorities concerning evidence and inquiry.

How Section 269UI fitted into the property-purchase procedure

Under the former Chapter XX-C procedure, parties furnished a statement relating to a proposed transfer under Section 269UC. The appropriate authority could examine relevant information and, subject to statutory conditions, make an order under Section 269UD. Section 269UI supported that examination by incorporating the specified Section 131 powers. A purchase order, if validly made, was subject to the separate provisions governing vesting, payment and related consequences.

Legislative history

The source text records amendments to the descriptions of senior income-tax officers: the Finance Act, 1988 substituted the reference to Chief Commissioner, while the Finance (No. 2) Act, 2014 introduced the titles Principal Chief Commissioner and Principal Commissioner. These terminology changes do not remove the express limitation that Section 269UI powers were exercisable for Chapter XX-C purposes.

Is Section 269UI applicable to property sales today?

For transfers effected on or after 1 July 2002, Chapter XX-C is excluded by Section 269UP. Consequently, this provision should not be presented as an operative requirement for routine property sale registration today. Other applicable income-tax provisions, stamp duty rules, registration requirements and property laws must be considered separately.

Official legal resources

For the statutory text and subsequent amendments, consult the Income Tax Department's Income-tax Act resources and India Code. Use the applicable historical version of the law when reviewing an older proceeding.

This article explains the statutory framework for general information. The outcome of any legacy matter depends on the law and facts applicable at the relevant time.