Income-tax Act, 1961 • Chapter XX-C • Historical provision

Section 269UL: Restrictions on Registration of Immovable Property Transfers

Section 269UL governed the registration and completion of specified immovable property transfers under the former Central Government pre-emptive purchase procedure in Chapter XX-C. It required a no-objection certificate from the appropriate authority in specified circumstances.

Current applicability: Under Section 269UP, Chapter XX-C does not apply to transfers of immovable property effected on or after 1 July 2002. Section 269UL must therefore be read as a historical rule, not as a current requirement to obtain a Chapter XX-C no-objection certificate for modern property registration.

What was Section 269UL?

Section 269UL, titled Restrictions on registration, etc., of documents in respect of transfer of immovable property, formed part of the pre-emptive purchase mechanism under Chapter XX-C of the Income-tax Act, 1961. Where a property transaction fell within the Chapter and a statement had been furnished under Section 269UC, the provision restricted registration and other acts effecting transfer until the appropriate authority certified that it had no objection.

Section 269UL explained subsection by subsection

Section 269UL(1): Restriction on registration

Notwithstanding other laws, a registering officer appointed under the Registration Act, 1908 could not register a document purporting to transfer immovable property exceeding the value prescribed under Section 269UC unless the document was accompanied by a certificate from the appropriate authority stating that it had no objection to the transfer for an amount equal to the apparent consideration shown in the transfer agreement covered by the statement furnished under Section 269UC(3).

Section 269UL(2): Restriction on effecting transfer

Independently of formal registration, the section also prohibited a person from doing, or omitting to do, anything that would have the effect of transferring the covered immovable property unless the appropriate authority had certified that it had no objection to the transfer on the stated apparent consideration. This was intended to prevent avoidance of the former pre-emptive purchase process through other modes of transfer.

Section 269UL(3): When the no-objection certificate was issued

The appropriate authority was required to issue the no-objection certificate, and deliver copies to the transferor and transferee, in either of the following situations:

It did not make an order for Central Government purchase under Section 269UD(1).
A purchase order under Section 269UD(1) stood abrogated under Section 269UH(1), following failure to tender or deposit the required consideration.

The no-objection certificate addressed the former Chapter XX-C restriction. It was not a substitute for complying with other applicable property, registration, stamp duty, or tax laws.

Important terms and connected provisions

Appropriate authority: The statutory authority designated under Chapter XX-C to consider transfer statements and decide whether to order Central Government purchase.
Apparent consideration: The consideration determined under the definitions and rules of Section 269UA, rather than simply any value selected for stamp-duty purposes.
Transferor and transferee: Respectively, the person transferring the property and the person to whom it is proposed to be transferred, as understood under Chapter XX-C.
No-objection certificate: The certificate issued under Section 269UL confirming that the appropriate authority had no objection to the proposed transfer for the stated apparent consideration.
Section 269UC: Provided for a written agreement and prescribed statement in transactions covered by the former Chapter XX-C procedure.
Section 269UD: Concerned the appropriate authority's order for purchase of the property by the Central Government.
Section 269UH: Provided for abrogation of a purchase order and re-vesting if the required consideration was not tendered or deposited within the statutory period.

Illustration of the former procedure

Suppose a qualifying property sale was proposed during the period when Chapter XX-C applied, and the parties furnished the required statement under Section 269UC. If the appropriate authority did not order Central Government purchase under Section 269UD, Section 269UL(3) required issuance of a no-objection certificate. The registering officer could then consider the transfer document for registration, subject to other applicable requirements. This is a historical illustration, not a present-day registration checklist.

Does Section 269UL apply to property registration today?

No, not to transfers effected on or after 1 July 2002. Section 269UP expressly excludes those transfers from Chapter XX-C. Contemporary property transactions instead need to be assessed under the currently applicable registration and stamp laws, relevant State rules, and applicable income-tax provisions. The absence of a Section 269UL certificate for a modern transfer is not, by itself, a Chapter XX-C obstacle to registration.

Older transactions, litigation, or title records from the period when Chapter XX-C applied may still require examination of Sections 269UC, 269UD, 269UH and 269UL in their historical context.

Official legislation and reference resources

Income Tax Department - official portal (consult the Income-tax Act, 1961 and archived Chapter XX-C text).
India Code - Government of India legislation database (Income-tax Act, 1961 and Registration Act, 1908).
Section 269UP - exclusion of transfers on or after 1 July 2002.

This article explains the statutory framework and its historical application. For a particular transaction, consult the relevant version of the legislation, notifications and applicable judicial decisions.