Section 269S — Chapter Not to Extend to State of Jammu and Kashmir (Omitted) (Omitted)

CHAPTER XX-A — ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER TO COUNTERACT EVASION OF TAX

Section 269S — Chapter not to extend to State of Jammu and Kashmir

Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise

Status: Omitted by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, with effect from 18 March 2020. No amendment. The Finance Act, 2026 does not touch any provision of Chapter XX-A.

Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch any provision of Chapter XX-A.

Mechanism: Originally a territorial-extent clause excluding the State of Jammu and Kashmir from the Chapter; omitted on the reorganisation of the State into Union territories, when central tax laws were extended uniformly.

Litigation profile: Omitted territorial-extent provision; no merits litigation.

A. COMMENTARY

Original function

Section 269S excluded the (then) State of Jammu and Kashmir from the operation of Chapter XX-A — a common territorial-extent reservation reflecting the State's special constitutional position prior to August 2019.

Omission

Following the reorganisation of Jammu and Kashmir into Union territories and the extension of central laws, the clause became otiose and was omitted by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, with effect from 18 March 2020. In any event the Chapter had already ceased to apply to post-30-September-1986 transfers under section 269RR, so the omission has no practical consequence.

Candour

Being an omitted extent clause, section 269S has no associated merits jurisprudence.

B. STATUTORY TEXT (verbatim)

Reproduced verbatim from the Income-tax Act, 1961, as amended up to the Finance Act, 2025 (the Finance Act, 2026 makes no change). Page-header/footer artefacts of the source PDF have been removed; wording, clause-lettering and punctuation are unaltered.

Chapter not to extend to State of Jammu and Kashmir.

269S. [Omitted by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, w.e.f. 18-3-2020.]

C. AUTHORITIES

Candour rule: an omitted territorial-extent clause; no authority. Reproduced for completeness, no section skipped.

Context — a spent Chapter overtaken by section 269RR

Mahavir Metal Works (P.) Ltd. v. Union of India — [1974] 95 ITR 197 (Delhi)

Held Constitutional validity of Chapter XX-A upheld. Compulsory acquisition of undervalued property, on payment of compensation equal to the apparent consideration plus the statutory solatium, is a reasonable restriction in the interest of countering tax evasion and does not offend Articles 14, 19(1)(f) or 31 of the Constitution.

Why The in-built safeguards — recorded reason to believe, Gazette notice, individual notice, objections, hearing and appeals — rescue the scheme from arbitrariness.