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Income-tax Act, 1961 / Chapter XX-C

Section 269UJ: Rectification of Mistakes by the Appropriate Authority

Meaning, scope, six-month limitation and the right to be heard when correcting an apparent mistake in an order under the historical property purchase provisions.

Historical provision: Section 269UP provides that Chapter XX-C does not apply to transfers of immovable property effected on or after 1 July 2002. Section 269UJ therefore remains relevant principally when examining older orders and proceedings; it is not a general rectification remedy for present-day property transfers.

What is Section 269UJ?

Section 269UJ of the Income-tax Act, 1961 empowers the appropriate authority to amend an order made by it under Chapter XX-C for the limited purpose of rectifying a mistake apparent from the record. It may act on its own initiative or after a person affected by the order brings the mistake to its notice.

Chapter XX-C governed certain historical purchases of immovable property by the Central Government. Section 269UJ was a correction mechanism within that chapter, rather than a general right to reopen the merits of a decision.

Essential conditions under Section 269UJ

1. Mistake apparent from the record

The error must be identifiable from the existing record without requiring an elaborate investigation or a fresh decision on a debatable legal issue. An obvious clerical error, transcription mistake or arithmetical error may qualify, depending on the record and circumstances. The section does not authorize a full review of an order merely because a party disagrees with it.

2. Who can initiate rectification?

The appropriate authority may correct a qualifying mistake on its own motion. Alternatively, any person affected by the order may bring the mistake to its notice. The statute does not make rectification automatic upon an application; the error must meet the statutory test.

3. Reasonable opportunity of being heard

The first proviso prohibits an amendment likely to affect a person prejudicially unless that person is given a reasonable opportunity of being heard. This reflects the principle of natural justice: a person should have an opportunity to respond before an adverse correction is made.

4. Six-month limitation period

The second proviso states that no amendment may be made after six months from the end of the month in which the original order was made. The relevant starting point is the end of the calendar month of the order, not the date on which the mistake is discovered.

How rectification operated in practice

  1. Identify the Chapter XX-C order and the specific error visible in its existing record.
  2. Bring the error to the appropriate authority's attention, or the authority may identify it itself.
  3. Check that the proposed amendment can be made within the six-month statutory limit.
  4. If the correction could prejudice a person, provide that person a reasonable hearing before amendment.
  5. Confine any amendment to correcting the apparent mistake, rather than conducting a substantive review.

Illustrative example

Suppose an order under Chapter XX-C was made on 12 January 2001 and contained an obvious transcription error. The six-month period would run from 31 January 2001, making 31 July 2001 the last day for an amendment under Section 269UJ, subject to the governing law and facts. If correcting the entry would adversely affect another person, that person would first need a reasonable opportunity of being heard.

This example illustrates the statutory method of computing the time limit; it does not establish that a particular historical order is still open to rectification.

Appropriate authority: The authority constituted for the purposes of Chapter XX-C, as addressed in Section 269UB. Immovable property: A defined expression for Chapter XX-C under Section 269UA. Order: Here, an order made by the appropriate authority under Chapter XX-C, such as a historical purchase order under Section 269UD.

Section 269UI concerns the authority's powers; Section 269UN addresses the finality of certain orders; and Section 269UP specifies the cutoff for applicability of the chapter.

For the official legislation and amendments, consult the Income Tax Department's Acts collection and India Code. These are reference links in the article, not external navigation menu items. Check the version applicable to the date of any historical order.

Frequently asked questions

Can Section 269UJ be used to challenge a decision on its merits?

No. Its function is rectification of an apparent mistake, not a full appeal or reconsideration of disputed facts or law.

Is a hearing mandatory in every case?

The express hearing requirement applies where the proposed amendment is likely to affect a person prejudicially.

Does the section govern new property transactions?

No. Chapter XX-C is inapplicable to property transfers effected on or after 1 July 2002 under Section 269UP.

Editorial note: This page explains a historical provision for general legal information. The result in an individual matter depends on the text applicable at the relevant time, the order and the record.