Circular No. 455

What it does

Stops acquisition proceedings under section 269C in small cases. From 1 April 1986 no such proceedings are to be initiated where the apparent consideration for the immovable property is Rs. 5 lakhs or less, and where a notice under section 269D has already been issued the proceedings are to be dropped if the apparent consideration is below Rs. 5 lakhs. The Board notes that the Finance Bill, 1986 proposed that no proceedings be initiated under section 269C for property transferred after 30 September 1986, and proposed to insert Chapter XX-C for purchase of immovable property by the Central Government in certain cases of transfer.

Why it was issued

The Board wished to achieve early finalisation of proceedings under the existing Chapter XX-A, given the change in the law proposed by the Finance Bill, 1986.

Who it reaches

Parties to transfers of immovable property for Rs. 5 lakhs or less
Transferees against whom a notice under section 269D had been issued
Competent authorities under Chapter XX-A

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.269C	no counterpart recorded
s.269D	no counterpart recorded

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

SECTION 269C l IMMOVABLE PROPERTY IN RESPECT OF WHICH PROCEEDINGS FOR ACQUISITION MAY BE TAKEN
1267. Acquisition proceedings in respect of immovable property for which the apparent consideration is Rs. 5 lakhs or less - Whether to be initiated after 1-4-1986 in view of proposed change in law
1. The Finance Bill, 1986 has proposed that no proceedings shall be initiated under section 269C in respect of a property transferred after 30-9-1986. The Bill also proposes to insert Chapter XXC providing for purchase by Central Government of immovable properties in certain cases of transfer.
2. With a view to achieve early finalisation of proceedings under the existing Chapter XX-A, the Board has decided that with effect from 1-4-1986 acquisition proceedings under section 269C will not be initiated in respect of an immovable property for which the apparent consideration is Rs. 5 lakhs or less and that where acquisition proceedings have been initiated by issue of notice under section 269D, the proceedings will be dropped if the apparent consideration of the immovable property is below Rs. 5 lakhs.
Circular : No. 455 [ F. 316/38/85-WT], dated 16-5-1986.

What to watch

The threshold for initiation is apparent consideration of Rs. 5 lakhs or less, while the direction to drop pending proceedings speaks of consideration below Rs. 5 lakhs.
It is an administrative direction not to proceed; it does not amend section 269C.
Chapter XX-A itself ceased to apply to transfers after 30 September 1986, as the circular records the Finance Bill proposing, and Chapter XX-C took its place.
The circular is issued from a wealth-tax file number although it deals with Chapter XX-A of the Income-tax Act.

Where you meet it

Only in an old Chapter XX-A acquisition matter where a section 269D notice on a small transaction was in issue.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular No. 128 — Sections 269D and 269P l Preliminary Notice/statement of Transfers 2 February 1974

← Circular No. 456 · Circular No. 454 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.

What this is