P.Mu.No. 6427/P1/2021, Final Order on Revision Petition
The Inspector General of Registration and Chief Controlling Revenue Authority of the Tamil Nadu Registration Department issued Proceedings P.Mu.No. 6427/P1/2021 on 8 November 2024, dismissing a revision petition concerning pending document P117/2010 at the Uraiyur Sub Registrar Office. The authority upheld the District Registrar's decision to treat the document, although titled as cancellation of a sale deed, as a conveyance under Article 23 of the Indian Stamp Act and to demand deficit stamp duty of ₹1,19,900.
What the decision covers
Proceedings P.Mu.No. 6427/P1/2021 of the Inspector General of Registration and Chief Controlling Revenue Authority concerns pending document P117/2010 at the Uraiyur Sub Registrar Office in the Tiruchirappalli Registration District. The document was executed on 18 February 2010 and described as a cancellation of an absolute sale deed.
The document sought to cancel sale deed number 5805/2008. Its stated property value was ₹15,00,000, and it carried stamp duty of ₹100. The District Registrar classified it as a conveyance under Article 23 of the Indian Stamp Act and demanded deficit stamp duty of ₹1,19,900.
Who is affected
Proceedings P.Mu.No. 6427/P1/2021 directly affects the parties connected with pending document P117/2010, including the revision petitioner and the persons claiming through the earlier transaction. It is also relevant to anyone presenting a deed that is called a cancellation deed but contains terms returning property rights or consideration to the earlier owner.
The decision records that stamp duty classification depends on the substance of the transaction contained in the document, rather than its title or description.
Key findings
The Inspector General of Registration and Chief Controlling Revenue Authority relied on the wording of the cancellation document, including that:
- The money received by the first party had been returned to the second party, who acknowledged receipt.
- The second party accepted that the property belonged absolutely to the first party.
- The second party, the principal, successors and heirs would not claim further ownership, possession or interest.
- Property tax, water tax, electricity and underground drainage records had previously been transferred to the second party's name.
- Forms had been signed to transfer those records back to the first party.
The authority found that the earlier sale had been acted upon. The later failure to complete changes in revenue or utility records did not override the wording of the document.
Outcome
Proceedings P.Mu.No. 6427/P1/2021 upheld the District Registrar's order dated 3 August 2020 and dismissed the revision petition filed on 11 January 2021 under Section 56(1) of the Indian Stamp Act. Pending document P117/2010 remains classified as a conveyance under Article 23, with the recorded deficit stamp duty demand of ₹1,19,900.
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Common questions
Does calling a document a sale deed cancellation make it subject only to cancellation deed stamp duty?
Not in this case. The Inspector General of Registration and Chief Controlling Revenue Authority decided that the document's actual terms made it a conveyance under Article 23, despite its cancellation title.
Why was pending document P117/2010 treated as a conveyance?
The document recorded repayment of consideration, recognition of the first party's absolute ownership, surrender of further claims and steps to transfer property related records back to the first party.
What deficit stamp duty was demanded for document P117/2010?
The recorded deficit stamp duty demand was ₹1,19,900. The document had originally carried stamp duty of ₹100.
Was the revision petition successful?
No. Proceedings P.Mu.No. 6427/P1/2021 dismissed the revision petition and upheld the District Registrar's classification and deficit stamp duty demand.
