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TMI Blog1985 (8) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 Kastoorilal, the Lekhpal and one Ranjitsingh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se cases where private parties by arrangement clandestinely or fraudulently undervalued the property which is the subject matter of transfer with a view to deprive the government of legitimate revenue by way of Stamp duty. Before addition of Section 47-A, there was no provision in the Stamp Act empowering the revenue authorities to make an enquiry of the value of 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 part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re it establishes, determine the market value of the property, which is the subject matter of the conveyance to be more than the minimum given in the rules. While determining this question, he will have to find that the market value of the property has not been truly set-forth in the instrument. He will be required to confine his consideration to the particular document 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the transaction sets forth the market value truly or not. Similarly, the hands and power of the Collector are not confined to the minimum, value given in Rule 341. It can hold it to be more if it is satisfied on the materials brought before him to that effect. Rule 341 had been framed by the legislature only for the limited purpose of providing a guideline. It is not conclusive. 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 state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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