D.Dis.No.4598/P1/2021-1, Appeal concerning Document No.6322/2011
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.4598/P1/2021-1 dated 14 October 2024, finding that the stamp duty exemption for societies registered under the Tamil Nadu Cooperative Societies Act, 1983 does not apply to Om Sakthi Kalikambal Multi State Cooperative Housing Society Limited. The proceedings reject the society’s objections to the recovery of Rs.1,77,766 relating to sale deed Document No.6322/2011 registered at the Sub Registrar Office, Tiruvotriyur.
What the proceedings cover
The proceedings of the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, concern an appeal under section 33A(3) of the Indian Stamp Act, 1899. The appeal challenged the District Registrar, Chennai (North), proceedings dated 8 December 2020 for recovery of Rs.1,77,766 relating to Document No.6322/2011.
The document under review was a sale deed executed on 16 August 2011 and registered at the Sub Registrar Office, Tiruvotriyur. It transferred Plot No.7, measuring 1,792 square feet, in Om Sakthi Kalikambal Cooperative Nagar, Mathur Village, to Om Sakthi Kalikambal Multi State Cooperative Housing Society Limited.
Why stamp duty was disputed
The Sub Registrar registered Document No.6322/2011 without collecting stamp duty, on the understanding that the exemption under G.O.Ms.No.2179 dated 29 June 1966 applied to societies registered under the Multi State Cooperative Societies Act, 2002.
The later audit and registration proceedings took a different view:
- The property’s market value was recorded as Rs.22,22,080.
- The sale deed bore no stamp duty.
- The District Registrar treated the instrument as a sale deed and determined deficit stamp duty and penalty of Rs.1,77,766.
- A Government letter dated 21 October 2013 clarified that the exemption for societies under the Tamil Nadu cooperative law did not apply to societies registered under the Multi State Cooperative Societies Act, 2002.
- The Government letter dated 21 October 2013 superseded an earlier Government letter dated 9 April 2009.
Decision and reasoning
The Chief Controlling Revenue Authority and Inspector General of Registration rejected the argument that the 2013 clarification could not affect a deed registered in 2011. Relying on a Madras High Court judgment dated 19 February 2024, the authority treated a clarification of existing provisions as retrospective.
The authority also relied on a Madras High Court judgment dated 12 August 2022 involving the same appellant society. That judgment held that an exemption issued under the Tamil Nadu Cooperative Societies Act, 1983 applies only to societies registered under that State law, not to a Multi State cooperative society registered under the Central law of 2002. The proceedings therefore find that Document No.6322/2011 was not eligible for the claimed stamp duty exemption.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Was Om Sakthi Kalikambal Multi State Cooperative Housing Society Limited eligible for the stamp duty exemption?
No. The proceedings find that the exemption under G.O.Ms.No.2179 dated 29 June 1966 did not apply because the society was registered under the Multi State Cooperative Societies Act, 2002.
How much did the District Registrar seek to recover?
The District Registrar ordered recovery of Rs.1,77,766 relating to Document No.6322/2011. The document records this amount as the deficit stamp duty and penalty determined by the District Registrar.
Why did the Sub Registrar initially register the sale deed without stamp duty?
The Sub Registrar believed that the stamp duty exemption for cooperative societies also applied to societies registered under the Multi State Cooperative Societies Act, 2002. The later audit and Government clarification rejected that interpretation.
Could the society avoid recovery because the deed was registered before the 2013 clarification?
The proceedings reject that argument. Relying on a Madras High Court judgment dated 19 February 2024, the authority found that a clarification concerning existing provisions operates retrospectively.
