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Refusal of registration of sale deed based on valuation discrepancy and non-production of income-tax clearance certificate. Analysis: The petitioner challenged the refusal of registration of a sale deed by the second respondent based on the valuation discrepancy. The sale deed stated the consideration as Rs. 1,18,000, but the second respondent refused registration, citing that the property's market value exceeded Rs. 2 lakhs. The petitioner alleged ulterior motives, which the second respondent denied. The court noted that undervaluation is addressed by section 45A of the Karnataka Stamp Act, which allows the registering officer to refer the document for proper valuation if there are reasons to believe the property is undervalued. The power under section 45A is not arbitrary but requires a valid reason to believe undervaluation. The second respondent, instead of referring the document under section 45A, invoked section 230A of the Income-tax Act. Section 230A restricts registration of documents transferring property valued over Rs. 2 lakhs without an Assessing Officer's certificate. The court clarified that "valued" in this provision refers to the valuation in the sale deed, not the registering officer's valuation. The court emphasized interpreting section 230A based on the language used, not supposed intentions. The court distinguished a decision by the Allahabad High Court, stating that the decision was based on a specific circular not applicable in this case. The court held that the second respondent lacked competence to reject registration solely for not producing the certificate under section 230A. The court set aside the refusal and directed the respondent to proceed with registration unless there are other impediments. The court exercised writ jurisdiction due to the case's general importance and potential impact on similar cases. In conclusion, the court allowed the writ petition, setting aside the refusal of registration without costs, emphasizing the need for valid reasons to refuse registration based on valuation discrepancies and the correct interpretation of relevant legal provisions.
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