D.Dis.No.4598/P1/2021-1, Stamp Duty Appeal Proceedings
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.4598/P1/2021-1 dated 14 October 2024 concerning the stamp duty appeal for sale deed Document No.6322/2011 registered at the Sub Registrar Office, Tiruvottriyur. The authority concluded that Om Sakthi Kalikambal Multi-State Co-operative Housing Society Limited was not eligible for the stamp duty exemption granted to cooperative societies registered under the Tamil Nadu Cooperative Societies Act, 1983.
What the proceedings decide
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, considered an appeal under the Indian Stamp Act, 1899 against the District Registrar, Chennai (North). The dispute concerned whether a sale deed in favour of Om Sakthi Kalikambal Multi-State Co-operative Housing Society Limited qualified for a cooperative society stamp duty exemption.
The authority concluded that the exemption under G.O. (Ms.) No.2179 (Cooperation), dated 29 June 1966, did not apply because the society was registered under the Multi State Cooperative Societies Act, 2002, rather than the Tamil Nadu Cooperative Societies Act, 1983.
Property and document covered
The proceedings relate only to the following transaction:
- Sale deed Document No.6322/2011 at the Sub Registrar Office, Tiruvottriyur.
- Date of execution, 16 August 2011.
- Property, Plot No.7 in Om Sakthi Kalikambal Cooperative Nagar, Mathur Village.
- Plot extent, 1,792 square feet.
- Market value recorded in the proceedings, Rs.22,22,080.
- Claimant, Om Sakthi Kalikambal Multi-State Co-operative Housing Society Limited.
- Stamp duty borne by the deed, nil.
- Deficit stamp duty and penalty determined by the District Registrar, Rs.1,77,766.
Why the exemption was refused
The Sub Registrar had registered the deed without collecting stamp duty, on the understanding that the exemption also covered societies registered under the Multi State Cooperative Societies Act, 2002. An audit later found that remission was unavailable because the society was not registered or deemed registered under the Tamil Nadu Cooperative Societies Act, 1983.
Government letter No.16495/J1/2012-5 dated 21 October 2013, which superseded an earlier government letter dated 9 April 2009, clarified that the exemption did not apply to multi-state cooperative societies.
The authority relied on Madras High Court judgments stating that a clarification of an existing liability can operate retrospectively and that an exemption issued under the Tamil Nadu legislation applies only to societies registered under that legislation.
Who may be affected
These proceedings directly concern the named society and sale deed. They are also relevant to multi-state cooperative societies claiming Tamil Nadu stamp duty exemptions intended for societies registered under the Tamil Nadu Cooperative Societies Act, 1983.
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 the stamp duty exemption for Tamil Nadu cooperative societies apply to a multi-state cooperative society?
According to these proceedings, no. The exemption under G.O. (Ms.) No.2179 dated 29 June 1966 applies to societies registered under the Tamil Nadu Cooperative Societies Act, 1983, not societies registered under the Multi State Cooperative Societies Act, 2002.
Why was stamp duty initially not collected for Document No.6322/2011?
The Sub Registrar registered the sale deed without collecting stamp duty under the impression that the cooperative society exemption also applied to societies registered under the Multi State Cooperative Societies Act, 2002.
What amount did the District Registrar determine as deficit stamp duty and penalty?
The District Registrar, Chennai (North), determined deficit stamp duty and penalty of Rs.1,77,766 for the sale deed.
Did the fact that the deed was registered in 2011 protect it from the 2013 clarification?
No. The Chief Controlling Revenue Authority relied on a Madras High Court judgment stating that a clarification concerning liability under existing provisions can operate retrospectively.
