Proceedings of the Chief Controlling Revenue Authority and Inspector General of Registration, D.Dis.No. 36115/P1/2018

What the proceedings decide

The proceedings of the Chief Controlling Revenue Authority and Inspector General of Registration, D.Dis.No. 36115/P1/2018 dated 27 August 2018, concern Gift Deed Document No. P247/2017 at the Sub Registrar Office, Tiruvottriyur. Mrs. K. Nageswari executed the deed in favour of Sri Sathya Sai Central Trust for property at plot No.2395 in the Tamil Nadu Housing Board Scheme, Mathur village.

The authority allowed the trust's revision petition and set aside the decision of the District Registrar, Chennai (North). The decision applies directly to the gift deed and the parties identified in the proceedings.

Stamp duty dispute

The Gift Deed stated a property value of Rs.18,44,700 and carried stamp duty of Rs.73,888. The parties claimed the concession available under G.O.Ms.No.1224, Revenue Department dated 25 April 1964, read with G.O.Ms.No.224, Commercial Taxes Department dated 11 December 2003.

The registering officer treated the deed as deficiently stamped. The District Registrar then demanded:

• Deficit stamp duty of Rs.55,241.
• Penalty of Rs.2,259.

The District Registrar considered the deed ineligible because there was no proof that the trust's approval under section 80G of the Income Tax Act, 1961 remained current, and because the charitable purpose was considered not to have been stated in the deed.

Findings on the concession

The Chief Controlling Revenue Authority and Inspector General of Registration found that:

• The trust's section 80G approval, last renewed on 21 September 2010, remained current because it had not been rescinded by the Income Tax Department.
• The relevant Income Tax letter stated that renewal was not required following the identified amendment and that the approval remained valid until rescinded.
• Clause 5 of the Gift Deed stated that the transfer was made without consideration, with charitable intention, for the purpose for which the trust had been formed.
• Gifts or settlements for charitable or religious purposes receive one half of the otherwise applicable stamp duty when the recipient society or trust is approved under section 80G.

Who is affected

The proceedings directly affect Mrs. K. Nageswari, Sri Sathya Sai Central Trust, and Document No. P247/2017. Property owners or trusts considering similar charitable gifts can see from the stated reasoning that current section 80G approval and a clearly expressed charitable or religious purpose were central to eligibility for the concession.