ப.மு. 13128/P1/2021, நாள் 02.06.2022
The Head of the Tamil Nadu Registration Department and Chief Controlling Revenue Authority issued order number ப.மு. 13128/P1/2021 dated 2 June 2022, dismissing an appeal concerning the stamp duty classification of release deed number 1161/2016 registered at the Arcot Sub Registrar Office. The authority upheld its treatment as a sale or conveyance because the recipient had no pre-existing right and consideration was paid, but directed the District Registrar, Arakkonam, to verify the correct market value and deficit stamp duty and issue a revised order if necessary.
What the proceedings decide
The Head of the Tamil Nadu Registration Department and Chief Controlling Revenue Authority issued order number ப.மு. 13128/P1/2021 dated 2 June 2022 under Section 33A(1) of the Indian Stamp Act. It concerns document number 1161/2016, registered at the Arcot Sub Registrar Office as a release deed dated 24 February 2016.
The appeal challenged the District Registrar, Arakkonam's decision to classify the document as a transfer under Article 23 and demand deficit stamp duty of Rs.5,03,808. The appellate authority dismissed the appeal and accepted the District Registrar's classification, subject to verification of the property's market value and the resulting duty.
Why the document was treated as a sale
The proceedings record that the registering officer originally accepted stamp duty of Rs.25,000 on the basis that the document was a release falling under Article 55-A. An audit later found that the property had been obtained by Mr. Renu through earlier document number 2336/2001.
The authority relied on the following facts and conclusions:
- The recipient had no pre-existing right in the property during Mr. Renu's lifetime.
- The document recorded consideration of Rs.1,00,000 each from three persons, totalling Rs.3,00,000.
- A transfer by a person with exclusive ownership to a son who has no pre-existing right, in return for consideration, was treated as a sale.
- The appellants' argument that the property was ancestral Hindu joint family property, and that the parties had joint rights, was rejected.
- The audit also recorded a deficit registration fee of Rs.71,545.
Market value and further action
Order number ப.மு. 13128/P1/2021 dated 2 June 2022 notes a discrepancy in valuation. The audit calculation used Rs.75,54,400 and arrived at required stamp duty of Rs.5,28,808, leaving Rs.5,03,808 after deducting the Rs.25,000 already paid. However, page 7 of the registered document stated the current market value as Rs.72,02,400.
The District Registrar, Arakkonam, was therefore instructed to verify the correct market value and deficit stamp duty. If required, the District Registrar must issue a corrected order. The proceedings directly concern the parties to document number 1161/2016 and the duty payable on that transaction.
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Common questions
Was the appeal against the deficit stamp duty successful?
No. The Head of the Tamil Nadu Registration Department and Chief Controlling Revenue Authority dismissed the appeal and accepted the classification of the transaction as a sale or conveyance.
Why was the release deed treated as a sale?
The authority found that the recipient had no pre-existing right in the property and that consideration was paid. On those facts, the transfer was treated as a sale rather than a release under Article 55-A.
Is the deficit stamp duty of Rs.5,03,808 final?
The amount had been fixed at Rs.5,03,808, but the District Registrar, Arakkonam, was directed to verify the correct market value and deficit stamp duty. A corrected order may be issued if necessary.
What market value discrepancy did the authority identify?
The audit calculation used Rs.75,54,400, while page 7 of the registered document stated Rs.72,02,400 as the current market value.
