Official guidance, Tamil Nadu land law
No.45591/P1/2023, Revision Petition on Sale Deed No.P.125/2023
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued proceedings No.45591/P1/2023 dated 25 July 2024 on a revision petition concerning stamp duty for Sale Deed No.P.125/2023. The authority found that the Chennai Metropolitan Co-Operative Housing Society Limited's sale of 3.40 acres to Mr. M.V.Dharmesh did not relate to the society's housing business and therefore did not qualify for stamp duty remission under G.O.Ms.No.2179, Cooperation, dated 29 June 1966.
What the proceedings concern
Proceedings No.45591/P1/2023 dated 25 July 2024 were issued by the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, under section 56(1) of the Indian Stamp Act, 1899. They examine a revision petition against the District Registrar, Chennai North's stamp duty decision for Sale Deed No.P.125/2023, filed at the Sub Registrar Office, Konnur.
The sale deed, executed on 8 May 2023, conveyed 3.40 acres in Survey No.540/1, Ayanambakkam village, from the Chennai Metropolitan Co-Operative Housing Society Limited to Mr. M.V.Dharmesh. The stated sale consideration was Rs.10,73,85,556.
Stamp duty dispute
The sale deed was presented without stamp duty because remission was claimed under G.O.Ms.No.2179, Cooperation, dated 29 June 1966. Registration fees of Rs.21,48,330 were paid.
The registering officer impounded the document and referred it to the District Registrar. The District Registrar used a guideline market value of Rs.59,29,60,000 and determined:
- Deficit stamp duty of Rs.4,15,07,200.
- Penalty of Rs.3,000.
- The document's nature as a sale deed.
The revision petitioner disputed the denial of remission, the use of the guideline value and the calculation of the deficit stamp duty.
Conditions for stamp duty remission
The Chief Controlling Revenue Authority and Inspector General of Registration stated that G.O.Ms.No.2179 requires both of the following:
- The document must be executed by or on behalf of a cooperative society, or by its officer or member.
- The document must relate to the business of that society.
The records indicated that Mr. M.V.Dharmesh appeared to have been admitted as a member five days before execution, although the District Registrar's file did not clearly contain documentary proof of membership.
The authority found that selling the entire 3.40 acres, which was not a house site, could not be treated as providing housing facilities to a member. The society's byelaws supported acquiring land for development and selling house sites in a layout, but not conveying the whole property in this manner. The sale deed was therefore found outside the scope of the stamp duty remission.
Who may be affected
The reasoning is relevant to cooperative housing societies and their members claiming remission. Membership alone is not enough. The transaction must also relate to the society's business and housing objects.
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
Does buying land from a cooperative housing society automatically qualify for stamp duty remission?
No. Proceedings No.45591/P1/2023 state that the document must be executed by the cooperative society or its officer or member, and the transaction must also relate to the society's business.
Why was remission not accepted for Sale Deed No.P.125/2023?
The Chief Controlling Revenue Authority and Inspector General of Registration found that conveying the entire 3.40 acres, rather than a house site developed to provide housing, did not relate to the society's housing business.
What deficit stamp duty and penalty had the District Registrar ordered?
The District Registrar, Chennai North, determined deficit stamp duty of Rs.4,15,07,200 and a penalty of Rs.3,000.
Was the buyer's cooperative society membership established?
The proceedings state that the buyer appeared to have been admitted as a member on 3 May 2023, five days before the sale deed. However, it was not clear from the District Registrar's file whether documentary proof supported that membership.
