D.Dis.No.15687/P1/2019, Revision Petition, Document No. P.8/2015
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai 600 028, issued proceedings D.Dis.No.15687/P1/2019 dated 15 March 2024 on a revision petition concerning a rectification deed registered at the Sub Registrar Office, Bhavani. The authority found that the deed created leasehold rights for an additional period and was classifiable as a lease deed, making the District Registrar, Erode order determining Rs.51,980 as deficit stamp duty and penalty sustainable.
What the proceedings decide
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai 600 028, issued proceedings D.Dis.No.15687/P1/2019 dated 15 March 2024 under section 56(1) of the Indian Stamp Act, 1899. The proceedings concern Document No. P.8/2015, titled “Deed of Rectification of Lease Deed”, presented at the Sub Registrar Office, Bhavani.
The authority found that the document was not merely correcting a typing error. It created leasehold rights for a period not granted by the earlier lease and was therefore classifiable as a lease deed for the period from 16 February 2013 to 15 February 2033.
Property and parties covered
Document No. P.8/2015 was executed on 31 December 2014 between:
- Lessor, Mrs. S. Karthika.
- Lessee, M/s. Syndicate Bank, Kalingarayanpalayam Branch.
- Stamp borne by the document, Rs.20.
The deed sought to rectify Lease Deed Document No.2963/2013 concerning the same property. The earlier deed stated a lease term of 10 years, from 16 February 2013 to 15 February 2023, with an option for a further 10 year extension on mutually agreed terms and conditions.
Why additional stamp duty was supported
The Chief Controlling Revenue Authority and Inspector General of Registration gave the following reasons:
- The earlier lease did not itself grant leasehold rights from 16 February 2023 to 15 February 2033.
- Changing the stated lease period from 10 years to 20 years created a fresh leasehold right.
- The nature of the instrument presented for registration determined how it should be taxed, regardless of its title.
- The petitioner’s claim that stamp duty had already been paid based on rent for 20 years was not accepted because the cited provisions for crediting duty paid on related instruments did not apply to a lease deed.
- Rule 7 of the Tamil Nadu Stamp (Prevention of Undervaluation) Rules, 1968 was considered inapplicable because it relates to action under section 47-A, while action on this document was taken under sections 33, 38 and 40 of the Indian Stamp Act, 1899.
The District Registrar, Erode had determined Rs.51,980 as deficit stamp duty and penalty. Proceedings D.Dis.No.15687/P1/2019 found that determination sustainable.
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Common questions
Can a document called a lease rectification deed still be charged as a lease deed?
Yes. Proceedings D.Dis.No.15687/P1/2019 found that the document’s effect, rather than its title, controlled its classification. Because it created leasehold rights for an additional period, it was classifiable as a lease deed.
Why was the extension from 10 years to 20 years treated as creating a new right?
The earlier lease granted a 10 year term and only provided an option for a further extension on mutually agreed terms and conditions. It did not grant leasehold rights for the period from 16 February 2023 to 15 February 2033.
What amount did the District Registrar, Erode determine?
The District Registrar, Erode determined Rs.51,980 as deficit stamp duty and penalty for Document No. P.8/2015.
Did the authority accept that duty paid on the earlier lease should cover the rectification deed?
No. The Chief Controlling Revenue Authority and Inspector General of Registration stated that the provisions cited for reckoning duty paid on certain related instruments did not apply to a lease deed.
