Section 269UK: Restrictions on Revocation or Alteration of Property Transfer Agreements

Section 269UK of the Income-tax Act, 1961 restricted changes to certain immovable-property sale agreements and subsequent transfers after a statement was furnished under Section 269UC. It formed part of Chapter XX-C, the former Central Government pre-emptive purchase regime. This provision is important for interpreting older transactions and disputes, but it is not a current approval requirement for new property transfers.

What did Section 269UK provide?

Once the prescribed statement relating to a proposed transfer had been furnished under Section 269UC, Section 269UK(1) prohibited a person from revoking or altering the transfer agreement or transferring the property, despite any other law, until one of the two statutory conditions was met.

When could the restriction end?

1. No purchase order within the permitted period: The appropriate authority did not make an order for Central Government purchase under Section 269UD, and the time allowed for making that order had expired (Section 269UK(1)(a)).
2. Purchase order abrogated: A purchase order had been made under Section 269UD(1), but stood abrogated under Section 269UH(1), which dealt with failure to tender or deposit the required consideration (Section 269UK(1)(b)).

Effect of a prohibited transfer: Section 269UK(2)

Subsection (2) expressly provided that any transfer of immovable property made in contravention of subsection (1) was void. This was a statutory consequence for a prohibited transfer; the section did not merely prescribe a procedural penalty. Whether an older transaction was affected requires examination of the statement, relevant dates, orders, and any later court proceedings.

Definitions and connected legal provisions

Immovable property

The expression was defined for Chapter XX-C in Section 269UA, including specified land, buildings, and certain rights in or relating to them.

Appropriate authority

The authority constituted under Section 269UB for the historical pre-emptive purchase process.

Statement under Section 269UC

The prescribed statement submitted in connection with an intended transfer that brought the Chapter XX-C procedure into operation.

Purchase order under Section 269UD

An order directing purchase by the Central Government, subject to statutory safeguards and time limits.

Abrogation and re-vesting under Section 269UH

The statutory cancellation of a purchase order and restoration of the property to the transferor where the government failed to tender or deposit consideration within the applicable period, subject to the statutory court-dispute proviso.

Illustration of the historical rule

Suppose a seller and buyer had furnished a statement under Section 269UC while Chapter XX-C applied. They could not simply cancel or materially change that agreement, or complete a prohibited transfer, during the restricted period. If no government purchase order was made and the statutory period expired, Section 269UK(1)(a) ceased to prevent the transaction on that ground. This illustration does not determine the validity of any specific agreement or transfer.

Does Section 269UK apply to property sales today?

No, not as a Chapter XX-C restriction on transfers effected on or after 1 July 2002. Current property transactions may still be subject to other laws, including registration and stamp-duty rules and applicable income-tax provisions. Section 269UK should not be confused with present-day tax deduction or property registration requirements.

Official legal sources

For the statutory text, amendments, and historical context, consult the Income Tax Department's Income-tax Act resource and the India Code legislative database. Check the version of the law applicable to the date of the transaction.

Frequently asked questions

Could parties revoke a sale agreement after filing the Section 269UC statement?

Historically, not until one of the conditions in Section 269UK(1)(a) or (b) was satisfied.

What happened if the property was transferred in breach of Section 269UK?

Section 269UK(2) stated that such a transfer was void.

Is a Section 269UC statement required for a new property sale in 2026?

Not under Chapter XX-C, because Section 269UP excludes transfers effected on or after 1 July 2002.

This article explains the historical provision for general legal information. For a legacy transaction, examine the applicable statute, original records, orders and judicial decisions.