Possessory rights under Chapter XX-A do not survive final acquisition, and tenants must surrender possession after vesting.

Chapter XX-A of the Income-tax Act, 1961 permits acquisition of both proprietary and possessory interests in immovable property, with notice to occupants, objections, appeals, and vesting in the Central Government free from encumbrances once the acquisition order becomes final and possession is taken under section 269-I. The compensation provisions contemplate apportionment among persons entitled to an interest, but they do not preserve any right to remain in occupation. A tenant, including a statutory tenant protected by rent control law, is therefore treated as an occupant for notice purposes but cannot continue in possession after final acquisition and must deliver possession to the competent authority.

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Issues: Whether a tenant, including a statutory tenant protected under rent control legislation, can continue in possession of immovable property after acquisition under Chapter XX-A of the Income-tax Act, 1961, when the property has vested in the Central Government under section 269-I.

Analysis: Chapter XX-A provides for acquisition not merely of proprietary rights but also of possessory rights in the immovable property. The statutory scheme requires notice to the person in occupation, permits objections and appeals, and culminates in vesting of the property in the Central Government free from all encumbrances once the acquisition order under section 269F(6) becomes final and possession is obtained under section 269-I. The compensation mechanism under sections 269J and 269K contemplates apportionment among persons entitled to it, which protects any interest in the property but does not preserve a right to remain in possession. The reference to occupants in section 269D includes contractual and statutory tenants, and the exclusion of Central Government property from rent control laws is consistent with the scheme of acquisition.

Conclusion: A tenant or statutory tenant has no right to continue in possession after final acquisition under Chapter XX-A and must deliver possession to the competent authority; the challenge fails.

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