Notice u/s 269D(2) of the Income-tax Act, 1961. - Income Tax - 1171/CBDT

INSTRUCTION NO. 1171/CBDT Dated : May 6, 1978 Section(s) Referred: 269D(2) Statute: Income - Tax Act, 1961 Instances have come to the notice of the Board where notice under section 269D(2) of the Income-tax Act, 1961 has not been served on all the transferors and transferees concerned, with the result that acquisition proceedings have been set aside by the Appellate Authorities. The Court have taken the view that by not serving the notice on all the transferors and transferees a valuable right given by the Statute has been denied to them and this denial of statutory right vitiates the entire proceedings and renders them illegal and void. 2. In a recent case sent for advice as to whether Special Leave Petition may be filed to the Supreme Court, the Additional Solicitor General has opined that the provision for notice under section 269D(2) confers a valuable safeguard enacted by the Legislature for the benefit of the persons affected and there in no reason why the same should be whittled away. He has, therefore, advised that the decision of the Court be accepted. 3. The Board desire that the Commissioners of Income-tax in charge of acquisition ranges should issue necessary instructions to the Inspecting Assistant Commissioners (Acquisition) to strictly follow the provisions of section 269D(2) and ensure that the notice under section 269D(2) of the Income-tax Act, 1961 is invariably served on "the transferor, the transferee, the person in occupation of the property, if the transferee is not in occupation thereof, and on every person whom the competent authority knows to be interested in the property".