Income Tax Act, 2025
Section 2: Ins. by s. 8 ibid. (w.e.f. 11982).
2. Ins. by s. 8 ibid. (w.e.f. 11982).
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(2) Notwithstanding anything contained in sub-section (1),—
(a) where, after the transfer to the transferee of the property referred to in that sub-section but
before the vesting of the property in the Central Government, the property has been damaged
(otherwise than as a result of normal wear and tear), the compensation payable under that sub-section
shall be reduced by such amount as the competent authority and the persons entitled to the
compensation may agree within fifteen days of the vesting of the property in the Central Government
or in default of such agreement as the court may, on a reference made to it in this behalf by the
competent authority or by any person duly authorised for the purpose by the competent authority,
determine to be the amount that may have to be expended for restoring the property to the condition
in which it was at the time of such transfer ;
(b) where, after the transfer of such property to the transferee but before the date of publication
in the Official Gazette of the notice in respect of such property under sub-section (1) of section 269D,
any improvements have been made to the property, whether by way of addition or alteration or in any
other manner, the compensation payable in respect of such property under sub-section (1) shall be
increased by such amount as the competent authority and the persons entitled to the compensation
may agree within fifteen days of the vesting of the property in the Central Government or in default
of such agreement as the court may, on a reference made to it in this behalf by the competent
authority or by any person duly authorised for the purpose by the competent authority, determine to
be the amount spent for making such improvements.
(3) Every reference under clause (a) or clause (b) of sub-section (2) shall be made within thirty days
of the date on which the immovable property to which it relates becomes vested in the Central
Government or within such further period as the court may, on an application made in this behalf before
the expiry of the said period and on being satisfied that there is sufficient cause for doing so, allow and
such reference shall state clearly the compensation payable under sub-section (1) in respect of the
immovable property and the amount by which, according to the estimate of the competent authority, such
compensation shall be reduced under clause (a) or, as the case may be, increased under clause (b), of
sub-section (2).
(4) The amount by which the compensation payable under sub-section (1) in respect of any
immovable property acquired under this Chapter falls short of the amount which would have been
payable as compensation if that property had been acquired under the Land Acquisition Act, 1894 (1 of
1894), after the issue of a preliminary notice under section 4 of that Act on the date of publication in the
Official Gazette of the notice in respect of the property under sub-section (1) of section 269D, shall be
deemed to have been realised by the Central Government as a penalty from the transferee for being a
party to a transfer with such object as is referred to in clause (a) or clause (b) of sub-section (1) of
section 269C, and no penalty shall be levied for any assessment year on the transferee—
(a) under clause (iii) of sub-section (1) of section 271, for concealing the particulars or furnishing
inaccurate particulars of so much of his income as is utilised by him for paying to the transferor, by
way of consideration for the property, any amount in excess of the apparent consideration for the
property, notwithstanding that such amount is included in the income of the transferee;
(b) under clause (iii) of sub-section (1) of section 18 of the Wealth-tax Act, 1957 (27 of 1957),
for concealing the particulars or furnishing inaccurate particulars of so much of his assets as are
utilised by him for paying to the transferor, by way of consideration for the property, any amount in
excess of the apparent consideration for the property, notwithstanding that such assets are included in
the net wealth of the transferee.
Notwithstanding anything contained in sub-section
where, after the transfer to the transferee of the property referred to in that sub-section but
before the vesting of the property in the Central Government, the property has been damaged
(otherwise than as a result of normal wear and tear), the compensation payable under that sub-section
shall be reduced by such amount as the competent authority and the persons entitled to the
compensation may agree within fifteen days of the vesting of the property in the Central Government
or in default of such agreement as the court may, on a reference made to it in this behalf by the
competent authority or by any person duly authorised for the purpose by the competent authority,
determine to be the amount that may have to be expended for restoring the property to the condition
in which it was at the time of such transfer ;
where, after the transfer of such property to the transferee but before the date of publication
in the Official Gazette of the notice in respect of such property under sub-section
of section 269D,
any improvements have been made to the property, whether by way of addition or alteration or in any
other manner, the compensation payable in respect of such property under sub-section
shall be
increased by such amount as the competent authority and the persons entitled to the compensation
may agree within fifteen days of the vesting of the property in the Central Government or in default
of such agreement as the court may, on a reference made to it in this behalf by the competent
authority or by any person duly authorised for the purpose by the competent authority, determine to
be the amount spent for making such improvements.
Every reference under clause
or clause
of sub-section
shall be made within thirty days
of the date on which the immovable property to which it relates becomes vested in the Central
Government or within such further period as the court may, on an application made in this behalf before
the expiry of the said period and on being satisfied that there is sufficient cause for doing so, allow and
such reference shall state clearly the compensation payable under sub-section
in respect of the
immovable property and the amount by which, according to the estimate of the competent authority, such
compensation shall be reduced under clause
or, as the case may be, increased under clause
The amount by which the compensation payable under sub-section
in respect of any
immovable property acquired under this Chapter falls short of the amount which would have been
payable as compensation if that property had been acquired under the Land Acquisition Act, 1894 (1 of
1894), after the issue of a preliminary notice under section 4 of that Act on the date of publication in the
Official Gazette of the notice in respect of the property under sub-section
of section 269D, shall be
deemed to have been realised by the Central Government as a penalty from the transferee for being a
party to a transfer with such object as is referred to in clause
or clause
of sub-section
of
section 269C, and no penalty shall be levied for any assessment year on the transferee—
under clause
of sub-section
of section 271, for concealing the particulars or furnishing
inaccurate particulars of so much of his income as is utilised by him for paying to the transferor, by
way of consideration for the property, any amount in excess of the apparent consideration for the
property, notwithstanding that such amount is included in the income of the transferee;
under clause
of sub-section
of section 18 of the Wealth-tax Act, 1957 (27 of 1957),
for concealing the particulars or furnishing inaccurate particulars of so much of his assets as are
utilised by him for paying to the transferor, by way of consideration for the property, any amount in
excess of the apparent consideration for the property, notwithstanding that such assets are included in
the net wealth of the transferee.