9911796707
TMI Blog"Urban Ceiling Act" - on the provisions of Chapter XXA of the Income-tax Act, 1961.X X X X Extracts X X X X X X X X Extracts X X X X ..... mit has to file a statement under section 6 of the Act; under section 8, the Competent Authority has to prepare a draft statement and serve the same on the person concerned inviting objections thereto. After disposal of such objections, the Competent Authority has to prepare a revised draft statement and serve it on the persons concerned under section 9. Thereafter, the Competent Authority has to publish a (preliminary) notification under section 10(1) giving particulars of the vacant land in excess of the ceiling limit and stating that such land is to be acquired by the State Government. After considering any claims which may be preferred by the persons interested in the land, the Competent Authority has to publish a final notification und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... XA would not survive any longer. The Ministry of Law have, however, explained and advised further that acquisition by Central Government under Chapter XXA is in the nature of compulsion, i.e. it is not a voluntary sale by the owner/transferor to the Government as contemplated by section 5 of the Urban Ceiling Act. Further, under section 10(3) of the Urban Ceiling Act, it is only the property belonging to the owner/transferor which vests in the State Government. Therefore, if a property is acquired by Central government under another provision of law, which empowers it to do so, it ceases to belong to the owner/transferor and hence cannot vest in the State Government. Property held by the Central Government is also exempt from the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9F has become final in terms of the Explanation to section 269(i) of the Income-tax Act, 1961, if so, whether the Central Government is liable to any action by the transferor/transferee of the property under consideration for acquisition. 6. Regarding (i) of the preceding paragraph, the Board has advised that it is not necessary that the immovable property should have been held by the Central Government at the commencement of the Urban Ceiling Act. What is necessary is that the property should have been held by the Central government before the said property becomes vested in the State Governments which happens only by virtue of a notification under section 10(3) of the Urban Ceiling Act. Regarding (ii) of the preceding paragraph, the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s open to the Board to instruct its officers not to take possession of the property if it so chooses. So long as the possession is not taken, the land does not become vested in the Central Government. The question, then, is whether having initiated acquisition proceedings under Chapter XXA of the Act, if such land is not taken possession of, would the Central Government be liable to any action by the transferor of the said property? If the transferor suffers any damages and could prove so, it is open to such transferor to claim such damages against the Central Government. In such action, it would, of course, be open to the Central Government to plead that its acquisition proceedings under Chapter XXA could not be proceeded with because of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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