9911796707
Advanced Search 
TMI Blog1985 (8) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... d which were the subject matter of the two sale deeds, as set forth, was less than even the minimum value, he referred the sale deeds under Section 47A of the Stamp Act to the Collector for determination of the market value of such property and the proper duty payable under the said Act. The petitioner filed an objection before the Additional Collector District Stamp officer who issued notice to him. It was stated that the land purchased for the value shown in the sale deeds was proper. It was also asserted that prior to 5th Dec. 1977 the Government price (market value) for the land was ₹ 500/-per bigha. Consequently, Rule 341 of the Rules framed by the State of U.P. under Section 75 of the Stamp Act would not be applicable. Rule 341 provides that for the purpose of payment of stamp duty, the minimum market value of immovable property referred to in Section 47 A(1) of the Act shall be deemed to be not less than that as on the basis of the multiples given below : (1) Where the subject is land -- (a) in case of bhumidhari-800 times the land revenue (b) in case of sirdari land-400 times the land revenue. 3. Before the Additional Collector, the petitioner examined Kastooril ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property conveyed for determining the duty chargeable. Section 27 of the Stamp Act laid down that the consideration if any and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein. In case a person did not set forth true amount for which the transaction had taken place, the revenue authorities had no power to proceed with the defaulter, Himalaya House Co. Ltd. v. The Chief Controlling Revenue Authority, AIR 1972 SC 899. The Supreme Court held that for the purpose of Article 23, the value of consideration must be taken to be one as set forth in the conveyance deed. The question whether the purpose of determining the value of the consideration to revenue must have regard to what the parties to the instrument have elected to state the consideration to be. 7. In order to meet such a difficulty and to empower the revenue authority to determine the market value of the property, which is the subject of the conveyance, exchange, gift, settlement, award, or trust, and the duty as payable by the person liable to pay the same that Section 47-A was inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been presented for registration before him and in that case the limited enquiry to be made by him would be whether the parties to the conveyance or instrument deliberately undervalued it for the purpose of deceitful gain. In a case where it is found that the value of the conveyance was fraudulently made although more has passed on it, Section 47-A would come into play and upon that determination, the difference, if any, in the amount of duty shall be payable by the person liable to pay the duty. Fraud comprises all acts and concealments involving a breach of legal duty resulting in damage to the revenue. In the case of undervaluation of a document, the intention of the parties is to mislead the revenue by false allegations and by concealment of that which should have been disclosed. 11. Section 75 of the Act empowers a State Government to make rules to carry out generally the purpose of the Act. The purpose of Section 47-A is only to avoid evasion of the stamp duty. 12. In Sub-section (2) of Section 47-A the words important for consideration of its scope are 'truly' and 'set forth'. The word 'truly' would empower the Collector to examine whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sive. That being so, under Sub-section (1) of Section 47-A, if the Registering Officer is satisfied that the market value is less than even the minimum value, he may refer the document to the Collector for determination of the value of such property. This is the only function of Rule 341. It is neither binding on the person who produces the instrument for registration nor on the State Government. 15. Under Section 47-A, the Collector has the power to determine whether a particular document which is presented for registration is undervalued with a view to evade payment of stamp duty. For this purpose, he would be entitled to take into account the minimum prescribed by Rule 341 as a circumstance. But the minimum laid down in the Rule is not conclusive or determinative of the controversy. However, as stated above, this can be a circumstance which can be considered along with others. 16. It is true that since there can be no direct evidence of clandestine dealings, a finding about evasion can be given by considering the circumstances. It may further be stated that determination of undervaluation has to be made with reference to the particular transaction presented for registration. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
