Section 269UE of ITA, 1961 : Section 269Ue: Vesting Of Property In Central Government

Explanation using Example

Imagine a situation where Mr. Sharma agrees to sell his property to Mr. Gupta. The transaction is for a sum that is significantly lower than the market value, which raises suspicion under the Income Tax Act, 1961. The appropriate authority issues an order under section 269UD to acquire the property, suspecting tax evasion.

Upon this order, Mr. Sharma's property immediately vests in the Central Government as per Section 269UE(1). Mr. Sharma is then required to hand over possession of the property to the authority within 15 days as per Section 269UE(2).

If Mr. Sharma refuses to comply, the authority, under Section 269UE(3), is empowered to take possession forcibly if necessary. Furthermore, according to Section 269UE(4), the authority can call upon police assistance to ensure the transfer of possession to the government.

Section 269UE(5) clarifies that Mr. Sharma remains liable for any encumbrances on the property despite the government's acquisition, and Section 269UE(6) and (7) extend these provisions to situations involving rights to properties under construction.