Proceedings No. 26344/P1/2017, Consent Deed Stamp Duty Revision
The Tamil Nadu Registration Department's Inspector General of Registration and Chief Controlling Revenue Authority issued Proceedings No. P.Mu.26344/P1/2017 dated 8 June 2023 concerning consent deed P59/2015 at Joint Sub-Registrar Office No. 4, Madurai South. The authority accepted the revision petition, classified the deed as an ancillary document under section 4 of the Indian Stamp Act, and set aside the District Registrar's decision treating it as a sale and demanding deficit stamp duty and a penalty.
What the proceedings decide
Proceedings No. P.Mu.26344/P1/2017 dated 8 June 2023 were issued by the Tamil Nadu Registration Department's Inspector General of Registration and Chief Controlling Revenue Authority. They decide a revision petition relating to pending document P59/2015, described as a consent deed and dated 13 July 2015, at Joint Sub-Registrar Office No. 4, Madurai South.
The authority held that the consent deed should be classified as an ancillary document under section 4 of the Indian Stamp Act. It set aside the District Registrar's decision under section 40(1)(b) and allowed the revision petition.
Property and document background
The property was stated to have belonged to S. Palanivel as the sole heir of A.S.N. Subramania Pillai. S. Palanivel settled it on his wife, P. Geethabai, through document 10409/2007. P. Geethabai later sold it to S. Muhammed Ibrahim through document 6106/2014.
S. Palanivel's daughters, R. Shanmugapriya and V. Krithika Devi, and son, P. Senthil Murugan, then executed the consent deed confirming their consent to the earlier sale. The stated property value was Rs.1,15,00,000, and the deed carried stamp duty of Rs.700.
Dispute over stamp classification
The District Registrar treated the consent deed as a sale under provision 23 of the Indian Stamp Act. The reasoning was that the children had rights in ancestral property and were transferring those rights to the purchaser through the consent deed.
Based on that classification, the District Registrar demanded:
- Deficit stamp duty of Rs.4,30,550.
- A penalty of Rs.210.
- Stamp duty calculated at 5 per cent.
The document had also been impounded under section 33.
Reason for allowing the revision
The petitioner argued that the consent deed contained no wording transferring property rights and that persons without rights in the property could not make a transfer. The petitioner also relied on earlier decisions treating such a deed as an ancillary document under section 4.
The Inspector General of Registration concluded that even if the executants were assumed to retain legal rights in the property, a document of this kind should be treated as an ancillary document under section 4. The proceedings therefore cancel the deficit duty and penalty decision made by the District Registrar in the cited order.
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Common questions
Does the consent deed P59/2015 have to be stamped as a sale?
No. Proceedings No. P.Mu.26344/P1/2017 classify it as an ancillary document under section 4 of the Indian Stamp Act, not as a sale under provision 23.
Was the demand for Rs.4,30,550 in deficit stamp duty upheld?
No. The Inspector General of Registration set aside the District Registrar's order that imposed deficit stamp duty of Rs.4,30,550 and a penalty of Rs.210.
Does the decision state the final stamp duty payable on the consent deed?
The operative decision classifies the deed as an ancillary document under section 4 but does not specify a final payable amount. The petitioner's argument referred to stamp duty of Rs.5.
Does this decision directly apply to every consent or ratification deed in Tamil Nadu?
The proceedings directly decide the revision concerning document P59/2015 at Joint Sub-Registrar Office No. 4, Madurai South. They also cite earlier Registration Department decisions treating documents of this kind as ancillary documents under section 4.
