Chapter-3
Determination of stamp duty
(ADJUDICATION AS TO STAMPS)
Section 31 : Powers of Collector of Ambiguity on Stamp Duty :
(1) Any document may be executed. or may not have been executed. Or stamp duty may or may not have been paid on a document. A person may apply to the Collector seeking stamp duty on such document, (paying a fee on such application not less than five rupees and not exceeding fifteen rupees as directed by the Collector). The collector then determines how much stamp duty is payable on the document.
(2) In order to ascertain the stamp duty, the Collector may order the document to be filed before him and, as the case may be, affidavits with necessary particulars, other documents and evidence. At the same time
(a) Evidence filed under this section shall not be used against any person in any civil proceeding. (excluding the matter of stamp duty payable on the document concerned) (and)
(b) the person who has produced the evidence in the above manner may have paid the full amount of stamp duty payable on the said document as directed by the Collector. If the stamp duty is so paid, the person shall be liable to pay the penalty imposed under this Act for concealment of facts in respect of the said document. No need. (ie no fine should be imposed).
Section 32 : Issue of certificate by Collector as to payment of stamp duty :
(1) A document under section 31 may be filed before the Collector. The collector may have come to the conclusion that the document is worth paying stamp duty.
In that order-
(a) The Collector may treat the stamp duty as already paid on the said document. (or)
(b) the Collector may be satisfied that the stamp duty ascertained by the Collector under section 31 has been paid in full. In both the above cases the Collector should write an endorsement on the same document certifying that the stamp duty payable has been paid in full.
(2) If the Collector comes to the conclusion that the said document is not a document for which stamp duty is payable, the Collector shall mention the same on the said document.
(3) Where the Collector certifies that stamp duty has been paid on a document, or that no stamp duty is required to be paid, the document may be received in evidence. The document can also be registered.
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There are certain restrictions on the Collector's certification under this section. They are:
(a) If a document is produced before the Collector after one month from the date on which it was executed, or was first executed in India, the Collector shall not attest the document.
(b) A document may be executed or principally executed outside India (abroad). Such document before the Collector three months after entry into India. If filed, such document shall not be verified by the Collector. (or)
(c) A stamp duty of twenty paise may be payable on a document. Or a stamp duty of forty paise may be payable on the document relating to crop mortgage (Article 36-A of Schedule-1(A)) (under clauses 'A A' or 'AB' in section (3)). If such documents, promissory note, bill of exchange, any stamp duty has not been paid (in cases where less stamp duty has been paid), such documents shall not be attested by the Collector.
Commentary
This chapter deals with the powers of the Collector in respect of stamp duty. There are only two sections in this chapter. (Sections 31, 32). Actually the scope of this chapter is very short. Because this chapter applies only to cases where a person voluntarily files a document before the Collector for the purpose of determination of stamp duty, or whether actual stamp duty is payable on a document or not. There is also a time limit on such filing. (Clauses (a) and (b) of section 32, sub-section (3)) Similarly this chapter does not apply to cases where minimum stamp duty is payable. (Clause (c) of section 32, sub-section (3)). Looking at these exemptions and optional filing cases, it can be understood that the scope of this chapter is very narrow and not very important. The following judgments will help to give some understanding of the scope of this Chapter and Sections 31 and 32.
- Raymond Ltd., (Vs) State of Chattisgarh & Others 2007 (3) SCC 79 = AIR 2007 SC 2854.
- State of U.P. Vs. Arazzo Developers (P) Ltd., 2016 (12) SCC 530.
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Chapter – 4
Documents for which proper stamp duty has not been paid
(INSTRUMENTS NOT DULY STAMPED)
Section 33 : Seizure of documents on which stamp duty has not been duly paid:
(1) A document may be filed before a person authorized to receive evidence by law, or with the consent of the parties, or before any officer of a public office, except police officers. If the concerned officer or person deems that the stamp duty due on the document has not been paid, he shall impound the same.
(2) In that order, when the document in question is written, or when it is first written, a thorough examination shall be made as to whether the stamp duty payable under the Act has been paid or not. At the same time:
(a) A Magistrate or a Criminal Court shall not be required to examine (in the case of stamp duty) or seize any document filed before it during the pendency of other proceedings, except where Chapters nine and ten of the Code of Criminal Procedure, 1978 apply. (If the concerned Magistrate or Judge deems it unnecessary to examine a document for stamp duty).
(b) in the case of Judges of a High Court, the duty of perusing and seizing a document under this section may be transferred to the said Judge or to any other officer.
(3) In the case of this section—
(a) What offices are to be held in public offices (Public Offices) to be determined by the State Government. (and)
(b) The State Government shall also decide who shall be considered as 'in-charge of public office'.
Commentary
This section is designed to ensure that the revenue of the government is not compromised. If a Government Officer finds that stamp duty has not been paid on a document on which stamp duty is required to be paid, or that stamp duty has been paid less than the original, the document shall not be returned to the person who filed it, or to the person concerned. He should keep it to himself. This is called 'impounding'. The document shall be returned to the person only on payment of stamp duty duly payable (including fine as the case may be). This is a brief summary of this section. But criminal courts are exempted in this regard. (Except where Chapters 9 and 10 of the Code of Criminal Procedure apply). Thus the power of impounding is mainly vested in civil courts, arbitrators etc., officers and officials of public offices.
Indian Stamp Act 1899
35
is given For example, when a document showing non-payment of stamp duty is filed in the course of a suit in a civil court, the judge cannot refuse to take the document as evidence and return it to the person concerned. Keep that document with you. The court will accept the document as evidence only on payment of the requisite stamp duty (and fine if applicable). Non-payment of stamp duty shall not be accepted as evidence and shall not be returned to the concerned person. This is noteworthy. Although this section is clear so far, there is a possibility of a dispute about which officer has the authority to impose impoundment in government offices and related offices. Because there is no clarity in this section. This non-ambiguous answer is contained in sub-section (3). This section directs the State Governments to ascertain and declare which offices are considered to be public offices and which officers in those offices have the power to impound documents. The following judgments will help to give some understanding of the scope of this section.
- State of A.P. Vs. Smt. P. Lakshmi Devi 2008 (4) SCC 720 = AIR 2008 SC 1640.
- Tirupati Developers Vs. State of Uttarakhand and Others 2013 (9) SCC 332.
- SMS Tea Estates (Pvt.) Ltd., Vs. Chandamani Tea Company (Pvt.,) LTd., 2011 (14) SCC 66. Omprakash Vs. Lakshmi Narayan and others 2014 (1) SCC 618.
- Black Peral Hotels (P) Ltd., Vs. Planet M. Retail Ltd., 2017 (4) SCC 498 = AIR 2017 SC 1974.
Section 34 : Special provisions relating to receipts for non-payment of stamp duty :
Stamp duty may not be paid on a receipt for which stamp duty of ten paise is payable. When such receipts are filed in the course of audit of public accounts or otherwise, the concerned officer shall not seize the receipt. In lieu thereof, the concerned authority may direct to issue another receipt for payment of stamp duty.
Commentary
It is necessary to note the difference between documents and receipts (between section 33 and this section) in the matter of impounding.
Section 35 : Documents on which stamp duty has not been duly paid are not admissible in evidence :
Either by law or by agreement between the parties, a person entitled to record evidence shall admit a document in evidence only if the full stamp duty has been paid on a document liable to stamp duty by law. (Thus meaning that a document on which stamp duty has not been paid is not admissible in evidence). Similarly such document shall not be recognised, executed (shall not be acted upon), registered. Cannot be verified.
however,
(a) in cases where stamp duty has not been paid on the said document, in cases where the full stamp duty has been paid, or in cases where less stamp duty has been paid, in cases where the remaining stamp duty has been paid, fifteen rupees in addition to the stamp duty paid as above, or the stamp duty paid, or ten times the remaining stamp duty, whichever is more than fifteen rupees; If so, ten times the amount of stamp duty paid or fine, the document shall be accepted in evidence, executed, registered and attested.
(b) the person who is required to give a receipt with stamp duty, if the receipt is not given without stamp, the prescribed stamp duty;
In addition to payment, the receipt will be accepted as evidence only on payment of a fine of three rupees.
(c) Any contract may be in the form of mutual correspondence. Something in such correspondence
Stamp duty in respect of the entire contract if stamp duty is paid in respect of the contract on one
shall be treated as paid.
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(d) Notwithstanding this nexus, this section shall not prevent the admission of any document as part of the proceedings under the remaining chapters, except in proceedings under Chapters nine and ten of the Code of Criminal Procedure.
(e) Similarly a document may be written by the Government. Or it may be written to Govt. (Executed by, or on behalf of the Government). or the Collector may certify a certificate in the manner prescribed in section 32, or in the manner prescribed elsewhere in this Act. In such cases, this section does not preclude the court from admitting the document in evidence.
Commentary
Although this section is quite long, the summary is short. We have already learned that documents on which stamp duty has not actually been paid, or on which less stamp duty has been paid, are not admissible as evidence. However, there are some exceptions to this general principle. This section explains those exceptions. Certain types of documents are admissible in evidence on payment of stamp duty and a certain penalty in that order. The document becomes legal and valid. However, in case of promissory notes and some other documents such possibility e.g
not This matter is mainly noteworthy. And the second point is that this section does not apply to documents to which the Government is a party. However, this section does not apply in the case of proving an unimportant matter or a collateral purpose. For example, the Supreme Court has held in one case that in determining the ownership of a property, a deed on which stamp duty has not been paid, or on which less stamp duty has been paid, can be accepted as evidence by the court. (Bondar Singh and Another Vs. Nihal Shigh and Others 2003 (4) SCC 161 = AIR 2003 SC
1905). The following judgments will help to give some understanding of the scope of this most important section.
- Tiruvengalam Pillai Vs. Navaneetammal and others 2008 (4) SCC 530. Barium Chemicals Vs. Viswa Bharati Mining Corporation and another 2009 (16) SCC 262. Omprakash Vs Lakshmi Narayan 2014 (1) SCC 618 = AIR 2014 SC 123. Avinash Kumar Chowhan Vs. Vijay Krishna Mishra AIR 2009 SC 1489.
Section 36 : A document once admitted in evidence shall not be questioned again :
Once a document is admitted in evidence, either in the same court or in any other court, it cannot be argued that stamp duty has not been paid on the document and that it should not be admitted in evidence. But it can be questioned under section 61.
Commentary
Any dispute has to end somewhere. This section is like that. A court admits a document on mutual consent as evidence, as if an act had been concluded. Neither party shall question that decision either at the appellate stage or elsewhere. That means objection should be raised only when the document is produced in the court regarding the issue of stamp duty. When the court hears the objection and decides that it is admissible, the parties may appeal the decision if they object. Moreover, once accepted as evidence, the decision cannot be questioned. But a review of the decision of the court may be sought under this section. Section 61 contains an explanation on this point. Strangely, this section is so simple and clear that it has been controversial on many occasions
became The following judgments will help to give some understanding of the scope of this section.
- Shyamal Kumar Roy Vs. Sushil Kumar Agarwal 2006 (11) SCC 331 = AIR 2007 SC 637.
- Barium Chemicals Ltd., Vs. Viswa Bharati Mining Corporation 2009 (16) SCC 262.
- Bipin Shantilal Panchal Vs. State of Gujarat and Others 2001 (3) SCC Page 1 AIR 2001
SC 1158.
Indian Stamp Act 1899 37
Section 37: Consequence of delinquent payment of stamp duty :
In some cases, stamp duty may be payable on a document. However, it may have been paid improperly (improper description). If such a document is legally certified (certified to be duty stamped), the State Governments can make rules to make such documents valid.
Commentary
The foundation of this section is a common law principle that small mistakes can be corrected, for example documents written in a neighboring state with stamp papers, promissory notes, etc., are introduced as evidence in the courts of our state, and this section imposes a condition that such documents must be attested and certified by the District Collector of the concerned state. Documents so certified may be received in evidence by the court.
Section 38: Dealing with confiscated documents:
(1) An officer or person who impounds a document under section 33, after collecting the penalty under section 35, or the duty under section 37, after receiving the document in evidence, shall, after receiving the document in evidence,
A copy should be sent to the Collector along with the stamp duty payment certificate. That way
The collected amount should also be sent to the collector.
(2) In other cases, the person or officer concerned must send the seized document (original copy) to the Collector.
Section 39 : Cases in which Collector returns fine paid under Section 38 :
(1) A document may be sent to the Collector under sub-section (1) of section 38. If the Collector feels that an amount greater than the amount actually payable on the document has been paid as penalty, the amount may be returned to the person concerned. (If the amount is more than five rupees).
(2) If a penalty is imposed on a document on the sole ground that it is written in contravention of section 13, or section 14, the Collector may refund the entire penalty.
Commentary
Sections 38 and 39 deal with almost the same subject. This section provides that if the officer concerned or the court knowingly or unknowingly levies and collects an excess of fine on a document (under sub-section (1) of section 38), the collector can refund the excess amount and, in the case of documents to which section 13, 14 applies, the entire fine. But this is not mandatory. Collector's discretion. In that order, the Collector should also consider the financial condition of the concerned person (the person liable to pay stamp duty) in one case Supreme Court 606. (Peteti Subba Rao Vs. Anumala S. Narenda 2002 (10) SCC 427).
Section 40 : Powers of Collector in ascertaining stamp duty:
(1) The Collector may impound a document under section 33. (or) a document may be sent to the Collector under sub-section (2) of section 38. (a document on which stamp duty of 20 paise only has been levied, or a crop mortgage document on which stamp duty of 40 paise only has been paid (under Article 36-A of Schedule-1-A, except under clause (aa) or clause (bb) of section (3)) or bill of exchange, or A promissory note may be sent to the collector. In such cases the collector should act as follows:
(a) If the Collector considers that stamp duty has been paid on the said document, or that no stamp duty is required to be paid, the Collector shall endorse the same on the said document, as the case may be.
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(b) If the Collector considers that stamp duty is payable on the said document but the stamp duty has not been paid, he may order a fine of five rupees in addition to the stamp duty payable. (or) order ten times the stamp duty payable (whether the sum exceeds five rupees or less than five rupees) for the stamp duty due or underpaid.
At the same time, the entire fine can be waived in cases where the said document is written in contravention of Sections 13 or 14 only.
(2) A certificate issued by the Collector under clause (a) of sub-section (1) shall be a final decision in respect of that matter.
(3) When a document is sent to the Collector under sub-section (2) of section 38, he shall, after taking an appropriate decision on the document in accordance with this section, return it to the officer who sent the document.
Commentary
Although this section is long, the summary is short. Notwithstanding this section, if aggrieved with the decision taken by the Collector under this section, a revision petition may be filed before the High Court.
Section 41 : Cases in which penalty is not imposed:
Stamp duty may not be paid on a document on which stamp duty is payable. Or less stamp duty may have been paid. may be (Excluding a document in which only 20 paise has been paid, or a crop mortgage document in which only 40 paise has been paid under clause (aa) or (bb) of section (3) under Article 36 (a) of Schedule-1-A, or a promissory note, or a bill of exchange) . The said document may have been filed before the Collector voluntarily by a person. (within one year from the date on which the document was written, or originally written). If the Collector believes that the stamp duty has not been paid, or underpaid, either by accident or mistake, or under urgent circumstances, the stamp duty may be recovered only to the extent required by law, without taking action (meaning penalty) under sections 33 or 40.
Commentary
This section also deals with the discretionary powers of the Collector. This section confers a discretionary power on the Collector to waive the penalty if there is no cognizable malice to the Government in non-payment of stamp duty.
Section 41-A : Recovery of stamp duty in cases where document is registered even if stamp duty is not paid:
(1) After the coming into force of the Indian Stamp (Andhra Pradesh Amendment) Act, 1986, a registering authority may by mistake have registered a document on which stamp duty has been paid even though stamp duty has not been paid. Collector or audit team may have noticed the matter. In such cases, within five years from the date of such registration, the Collector shall issue a notice to the person liable to pay stamp duty on the said document. A show cause notice has to be sent to him regarding the stamp duty payable.
At the same time, in cases of fraudulent solicitation, falsehood, concealment of facts, or willful non-payment of stamp duty in violation of this Act or provisions of law, within ten years from the date of registration of the said document, the said stamp duty should not be collected with a fine of three times the said duty. The collector has to send a notice to the person.
(2) If the person who has received the notice under sub-section (1) gives a suitable declaration, the Collector, or a person authorized by him, shall examine the declaration and issue an order fixing the stamp duty and penalty payable by that person. (not exceeding the amount mentioned in the notice). The said amount must be paid by the person. The Collector is required to issue a certificate under section 42 when such amount is paid.
Indian Stamp Act 1899 39
(3) Any person aggrieved by an order passed by the Collector under sub-section (2) may file an appeal before the Chief Controlling Revenue Authority within three months from the date of the said order.
(4) An amount payable under this section shall be deemed to be a revenue unit and shall be collected in the same manner as the arrears are collected.
(Andhra Pradesh amended this section 16 8 1986),
Section 42: Endorsing an amount paid under sections 35, 40, 41, or 41-A:
(1) When stamp duty, or fine, or both (under sections 35, 40, 41, 41A) is paid in respect of a document, the officer concerned, or the Collector, shall certify the fact and endorse the document. In that order, the name, address, fine amount and stamp duty amount of the person who paid the amount should be endorsed separately.
(2) A document endorsed as above shall be admissible in evidence. will be implemented. On the application of the person from whom the said document was seized, the document shall be returned either to him or to a person nominated by him.
Although
(a) in the case of a document on which stamp duty and penalty under section 35 has been paid and received in evidence, shall be returned only after one month from the date of impoundment. Or if the collector states in the certificate that it will not be returned for a certain period, it will not be returned for that period.
(b) This section shall not affect Schedule-1, Order-13, Rule-9 of the Code of Civil Procedure.
Commentary
The main thing to note about this section is Rule-9 of Order-13 of the Civil Procedure Code. Any document may be filed in a civil court in connection with a suit. If the document is therefore admitted into evidence, there are some special procedures for retrieving the document. A Procedures are mentioned in Rule-9 of Order-13. This section shall not apply to the retrieval of such document. For example, after a document is admitted in evidence, even if a judgment is passed in that suit, if the judgment is appealed, it is not possible to retrieve the document until the appeal is successful. If the court allows in certain special circumstances, a copy of the document can be filed in the court and only then the document can be retrieved.
Section 43 : Offenses relating to stamps :
A person may be penalized under this chapter in respect of any document. Or other actions (proceedings) may have been taken. However, criminal actions (prosecution) can also be taken against the same person and in respect of the same document.
However, only if the Collector is satisfied that the person has acted with mala fide intention to evade payment of stamp duty, the prosecution shall be initiated against the person. (Considering that no such mala fide action should be taken in the absence of prosecution),
Commentary
This section is designed to provide an opportunity to file a criminal case against the persons concerned in respect of stamps, particularly in respect of evasion of stamp duty. Unfaithful, unfaithful, pecuniary
We know that in case of frauds etc. civil actions as well as criminal prosecution are possible.
The section applies the same principle to stamps, where 'intent' is paramount in criminal offences. That is
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It is essential that there is a malicious intent to trouble, torture, kill or harm a person. It is clear from the second paragraph of this section that the same principle is applied in the case of stamps. For example, knowing how much stamp duty is payable on a document, knowingly underestimating the value and paying less stamp duty is a bad idea. And thus punishable. Unknowingly paying less stamp duty is not punishable as there is no malice. This is noteworthy.
Section 44 : Cases in which recovery of stamp duty and penalty paid is possible :
(1) In respect of a document, a person may pay stamp duty or penalty under sections 35, 37, 40, 41. But another person may be liable to pay stamp duty on that document either pursuant to an agreement, or pursuant to section 29, or any other statute for the time being in force. In such cases, the first person can recover the stamp duty or penalty paid by him from the second person who is actually liable.
(2) In order to levy stamp duty or penalty as aforesaid, a certificate given in respect of that document under this Act shall be incontrovertible evidence.
(3) In cases where the persons concerned (the person who has paid the stamp duty or fine, the person liable to pay), are therefore parties to the same suit and the document is also admitted as evidence, the Court may include the said stamp duty or fine in the costs of the respective party in determining the costs of the suit. But if the court does not mention the said stamp duty or fine in the suit costs, no action can be taken for the said amount.
Commentary
The limit of this section is very low. Not much need arises with this section. The following judgment will help some understanding of this section.
- Chilakuri Gangulappa Vs. R.D.O. Madanapalle 2001(4) SCC 197 = AIR 2001 SC 1321.
Section 45 : Refund of penalty or stamp duty paid in excess by revenue authorities:
(1) Where a fine has been paid under section 35 or 40, the Chief Controlling Revenue Authority may, within one year from the date of such payment, on application in writing to the Chief Controlling Revenue Authority by the person who paid the fine, either wholly or in part. .
(2) the Collector or the Collector finds that stamp duty in excess of that payable on a document under section 35 or 40 has been paid;
Additional within three months from the date of such payment, if deemed necessary by the Chief Controlling Revenue Authority.
Such additional duty shall be refunded on written request of the person who has paid the duty.
Section 46 : Destruction of document in order to be sent to Collector- Consequence :
(1) During transmission of a document to the Collector under sub-section (2) of section 88, the document may not appear or may be destroyed. However, the sender of the document has no personal liability.
(2) Before so sending the document to the Collector, the officer invoking the document may direct the owner or person in charge of the document to give a copy of the document.
Section 47: An unstamped promissory note or bill of exchange may be stamped at the time of payment:
A promissory note or a bill of exchange that bears a stamp of ten paisa may not be stamped. such as
When a promissory note or bill is presented for payment, the payee shall affix the prescribed stamp on it.
shall be affixed and immediately voided, and thereafter, the amount due on the bill or promissory note shall be paid.
In that order, he can pay the remaining amount after deducting the stamp duty (ten paise) attached to him.
Indian Stamp Act 1899 41
Notwithstanding the foregoing paragraph, the person shall not be relieved of the liability to pay the fine in respect of the bill or promissory note in question.
Commentary
A comment is really unnecessary on this section which makes you laugh at the sight of it. A promissory note without stamp duty paid (unstamped) is invalid. However, there is no problem if a satteika sattheiya honestly pays the amount due on the promissory note. If any, the matter can be endorsed after payment of dues. Or you can tear the note itself. Also, who has the responsibility and need to affix the stamp and make it obsolete (as mentioned in section 12)? That means this section is useless.
Section 47-A : Dealing with documents of lesser value:
(1) An officer appointed under the Registration Act, 1908, a deed of sale, or a deed of gift, or a deed of exchange, or a deed of partnership, settlement, construction, development, or sale of immovable property, or a deed of power of attorney for the sale or development of immovable property. Either at the time of registration, the value of the property mentioned in the said document is shown to be less than the actual value. Noticeable. Otherwise, it may be deemed that the relevant parties have not complied with the standards fixed by the Government from time to time regarding the value of the assets. In such cases, the document may be kept unregistered and referred to the Collector to ascertain the market value of the property and the stamp duty payable.
However, if the concerned party has deposited fifty percent of the deficit duty as assessed and ascertained by the Registrar himself, there is no need to refer to the Collector in the above manner.
(2) When referred to him in the manner prescribed in sub-section (1), the Collector shall conduct an inquiry in accordance with the rules prescribed by this Act. The stamp duty payable has to be ascertained after hearing the parties concerned, considering their objections and taking into account the actual value of the property concerned. There is no appeal against the decision of the Collector to pay the difference in payment of stamp duty, i.e. the stamp duty paid minus the stamp duty still payable.
After ascertaining the market value by the Collector, if sufficient stamp duty is found to have been paid on the document, the amount so deposited will be returned to the person (without interest).
(3) Any document may be registered without being referred to the Collector under sub-section (1). However, if the Collector is of the opinion that the market value of the document has been understated, he may, within a period of two years from the date of registration, bring the document into his possession and examine it. The market value may be ascertained following the procedure prescribed in sub-section (2). If the stamp duty ascertained by the Collector is more than the stamp duty paid in that order, the difference must be paid by the person concerned.
However, this sub-section shall not apply to documents registered prior to the coming into force of the Indian Stamp (Andhra Pradesh Amendment) Act, 1971.
(3-2) (i) The Inspector General may consider that an order issued by the Collector under sub-section (2) or sub-section (3) is defective. If the Inspector General is of the opinion that the revenue rightfully due to the Government has been defrauded by the Collector either by mistake, or by inattention, or by failure to take into account other collateral factors affecting the value of the property concerned, he may bring the relevant record to himself and make necessary enquiry. Or you can inspect the property. Subsequently the Collector may modify the orders as per requirement. Or can cancel. Orders fixing market value and stamp duty can be issued.
Provided that within one year from the date of issue of order by the Collector under sub-section (2) or sub-section (3)
Only the Inspector General has to take appropriate action under this sub-section.
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(ii) At the same time, the matter is already in appeal. Or the Inspector General, in the case of a matter determined by the Appellate Authority (under sub-section (5)), shall not conduct a review under clause (i).
(iii) The Inspector-General, under clause (1), shall not issue an order increasing the stamp duty without giving an opportunity to the person concerned to make his objections and without considering his objections.
(iv) a dispute may be pending in a court of law in respect of a point of law involved in any matter. The judgment passed by the Court in that dispute may have a direct effect on the order passed by the Collector under sub-section (2) or (3) and the decision passed by the Inspector General. Or any court may issue a 'stay' order on an order passed by the Collector under sub-section (2) or sub-section (3), without the Inspector reviewing it. In both the above cases, the period during which the stay continued, or the time taken till the judgment of the Court is passed, is to be excluded in determining the period of one year under clause (1).
(4) Objection by any person to the decision (issued order) of the Collector under sub-section (2) or sub-section (3).
If so, an appeal may be filed before the appellate authority referred to in sub-section (5). Period for appeal,
Procedures of inquiry shall be prescribed by rules made in connection with this Act.
(4-a) Any person aggrieved by any order issued by the Inspector General under sub-section 3A may file an appeal in the High Court within two months from the date of issue of the said order.
(5) Appellate Authority viz
(i) City Civil Court in respect of the cities of Hyderabad and Secunderabad..
(ii) at other places
(a) Subordinate Judge's Court (if there is more than one Subordinate Judge's Court, the principal Subordinate Judge's Court having jurisdiction over the place where the property concerned is located) (or)
(b) in places where there is no Subordinate Judge's Court, the District Court having jurisdiction over the place where the property concerned is situated.
(6) For the purposes of this Act (in relation to this section) market value of property means the market value considered by the Collector or the appellate authority to be the open market value of the property referred to in the said document on the date of writing of the document referred to in sub-section (1).
At the same time, in the case of documents written by the Central or State Government, or on behalf of the respective Governments, or by the Authority, Body Corporate, etc., which are partly or wholly managed by the respective Governments, the market value of the property means the market value indicated in the document.
Commentary
This very long section is Andhra Pradesh amendment. This section came into force in 1975 and has since been amended several times. It was a time when understating the market value and paying less stamp duty, thereby depleting the government exchequer and making illegal profit, was considered a fundamental right of Indian citizens. Thilapapam is a fist in this illegal sharing. Document writers and registration officers are also involved in this. That is why no matter how many such laws and sections there are, stamp duty evasion continues in thousands and lakhs of rupees. Let's keep it that way and know a little bit about this section.
Undervaluation in real estate sales is mainly due to government policies.
All the areas are divided into zones and the value is decided by the government. That value is standard stamp duty
being paid. However, the difference between the government fixed price and the open market value is very high
The real problem is that. For example, the value of a square yard of land in an area is ten thousand rupees
Suppose confirmed. But in the open market that value is twenty thousand. A person spends twenty thousand per yard of land
Even if it is purchased, it is stamped as such, showing that it has been purchased at the rate of ten thousand rupees fixed by the government
Duty is being paid. Due to this, the government exchequer is suffering huge losses and is helpless to do anything
There are governments. At the same time sale of buildings, apartments, factories and machinery therein
In case of sale, the market value is more likely to be disputed. Such cases
Indian Stamp Act 1899 43
In view of this, this section confers unlimited discretion on the Registrars and Collectors in the matter of determination of market value. Andhra Pradesh Government has also framed special rules to prevent undervaluation.
Naturally, this section is controversial as it is crucial in curbing stamp duty evasion. At the same time there are some fundamental errors and ambiguities in this section. If the registration authority confirms that the value has been reduced, the registration should be refused and the matter should be reported to the Collector. How long should the registration be stopped? There is no answer in this section. Similarly, the exclusion of transactions involving Governments from the ambit of this section (probinzo under sub-section (6)) is somehow contrary to the principles of natural law. That means one rupee for the common man. One rupee for governments.
However, while this section is sound in principle, in practice it becomes the focus of many problems. Hence the scope of this section is Supreme Court. The Andhra Pradesh High Court had to review and formulate guidelines on several occasions. There are many cases where real estate giants, corporate firms, registration authorities and the government administration are being greedy on the basis of 'How much profit do you make, how much profit do I make', and common people are getting away with satisfying the officials with bribes, unable to fight with the government on the other side. Finally, some complex disputes are pushing the threshold of the courts. It is a fact that stamp duty evasion continues unabated despite this Act and this section. The following judgments will help to give some understanding of the scope of this section.
Residents Welfare Association Vs. State of U.P. 2009 (14) SCC 716. V.N. Devadoss Vs. Chief Revenue Control Officer Cum Inspector and Other 2009 (7) SCC 438. State of U.P. and Other Vs. Ambrish Tandan and another AIR 2012 SC 1140 = 2012 (5) SCC 566.
Government of AP Vs. P. Lakshmi Devi 2008 (4) SCC 720 = AIR 2008 SC 1640. Banglore Development Authority Vs. M/s. Vijaya Leasing Ltd., 2013 (14) SCC 737 = AIR 2013 SC 2417.
Urmila Devi Vs. Commissioner, Varanasi 2015 (17) SCC 534.
Section 48 : Collection of amount of stamp duty and penalty :
(1) All stamp duties, fines and other sums payable under this Chapter shall be collected (by the Collector) by selling the property of the person liable to pay such sums, (or) in accordance with the procedures for the time being in force for the collection of revenue arrears.
(2) All stamp duties and penalties payable by a person under this Chapter shall include a charge on the property of that person.
Accordingly, the charge shall be deemed to be pending in respect of all cases and other proceedings filed and pending in respect of collection of the said amounts under sub-section (1).
(3) Notwithstanding the Registration Act, 1908, notice shall be deemed to have been given under this Act if it is not mentioned in the prescribed indices (if specified) in respect of the charge, or the cancellation or withdrawal of the charge.
commentary
If any person fails to pay the duties, fines, etc. payable under this Act, his property
This section provides that it can be confiscated and sold by auction. Priority is given to his assets in that order
A charge is assumed. (in the absence of specific written orders), thereby benefiting
That is, in order to sell property belonging to a person under this Act, other private debts on the said property,
On mortgages, this Act has priority of charge. Therefore stamp within the scope of this Act before payment
Duty etc. will be paid. After that other dues. (Madhava Rao Sindhia Vs. Union of India AIR
1971 SC 530).
44 Karadeepika
Chapter -5
Recovery of value of unusable stamps
(ALLOWANCES FOR STAMPS IN CERTAIN CASES)
In case of spoiled impressed stamps, if an application is made to the Collector within the period prescribed under section 50, the value of the stamps may be returned to the applicant after circumstantial enquiry. But at the same time this section is subject to the rules to be made by the State Government regarding the evidence required for the presumption of destruction. At the same time the stamp was damaged as follows
This section applies only to papers:
(a) Circumstances in which the purpose for which the document was directed to be written is not fulfilled, either by mistake in writing, or by carelessness, or by mistake in signature.
(b) A stamp may be written on the paper in whole or in part. However, the person who is supposed to sign, has not signed the stamp paper.
(c) in the case of bills of exchange or promissory notes not drawn up payable immediately on demand— (
(1) Where a bill of exchange stamp, though signed by the drawer or some other person on his behalf, has not been accepted, or otherwise used, or delivered for any other purpose than acceptance,
However, the said stamp shall not bear the signature of acceptance of the said bill.
(2) A promissory note shall not bear the stamp, signature of the note holder or any other person on his behalf. Or the stamp should not have been used in any other way. Or should not be handed over to someone else.
(3) The drawer of the said note or bill on the stamp document prescribed for writing the promissory note or bill of exchange. Or another person may have signed on his behalf. But due to any mistake the document may be damaged and therefore unusable. (even if such bill of exchange is presented for acceptance, or endorsed, or endorsed, or delivered to the payee of such promissory note).
However, in the above two cases, in place of the damaged bill or promissory note, another such valid promissory note or bill should have been used.
(If both are shown, the value of the damaged stamp will be refunded).
(d) A stamp may be signed and executed by a person. but-
(1) Cases where such document is known to be unwritten and invalid in law.
(2) Any mistake or error (in writing) which causes the purpose or object for which the document was intended to be written to be unfulfilled.
Indian Stamp Act 1899
45
(3) If the document is not completed because the person required to sign it is dead, or the document is not completed because the person refuses to sign it.
(4) If the principal person who is to sign a document loses the right to sign the document, or refuses to sign, the purpose of the document is not accomplished because the document is in fact incomplete or incomplete.
(5) The person to whom a document relates, refuses to act in accordance with that document, or refuses to advance money due under that document, or refuses or non-acceptance of any office thereby granted, thereby failing to fulfill the purpose of that document.
(6) Where a document has been written in relation to a matter relating to some parties, another document has been written between the same parties, relating to the same matter (for the same purpose), rendering the first document useless,
(7) A document written on stamp paper of inferior value, the first document being rendered useless as a document of sufficient value relating to the same subject has been written.
(8) A document rendered useless by negligence or a mistaken signature on which another document with a full stamp is entered.
However, no legal proceedings may be initiated in respect of a document. 6. For cases where the said document is to be introduced as evidence in those legal proceedings, but cannot be so introduced on the ground of cancellation. (Provided that, in the case of an executed instrument no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence and that the instrument is given up to be cancelled).
Explanation : (1) For the purposes of this section, a certificate issued by the Collector under section 32 to the effect that full stamp duty has been paid on a document shall be deemed to be an impressed stamp.
Explanation : (2) An endorsement given under section 10-A shall also be deemed to be a stamp impressed within the meaning of this section in respect of the amount mentioned in the endorsement.
Commentary
This section is designed to enable refund of the value of such stamps in case of unused stamp. This section is given the English title "Allowances for stamps in certain cases". Allowance has a meaning of giving as compensation. That meaning has to be applied in the context of this chapter. This section is not of much importance. Situations of stamps which are out of use rarely arise. If such However, the process of recovering such stamps is very long. To recover the value of the stamps, it takes a long time. In the end, no one will resort to this section .
The main thing to note about this section is that this section applies only to printed (impressed) stamps. Not applicable to adhesive stamps. However, this section may also apply to stamps affixed in addition to a printed stamp. And the second point is that this section applies to cases where blank stamp papers are damaged and unfit for use, where the stamp paper is written on but not signed, and where it is otherwise useless. The Collector is authorized to refund the value of unused stamps. The details regarding what are useless stamps, how to apply, evidence etc. should be followed by the rules framed by the respective states. The time limit for application is explained in section 50. Some issues related to stamp duty refund, time limit for application etc
The following judgment is helpful for understanding.
Committee GFIL Vs. Libra Build Tech (P) Ltd., 2015 (16) SCC 31.
46 Karadeepika
Section 50 : Time limit for application under Section 49 :
The time limit for filing an application under Section 49 is as follows.
(1) In cases where sub-clause (5) of clause (d) applies, the application shall be filed within two months from the date of writing of the document.
(2) In cases where no document has been written on any stamp document, the application shall be filed within six months from the date on which the stamp ceases to be in use. (with in six months after the stamp has been spoiled).
(3) If a document is written on any stamp paper by either of the parties concerned, the application shall be filed within six months from the date mentioned in the document, or in cases where no date is mentioned, within six months from the date the document was originally written. Although
(a) When the unusable document is sent abroad for some reasonable cause, the application should be filed within six months from the date of its return to India from that abroad.
(b) In some cases, after one document is written, another document may be written in its place. But due to unavoidable reasons it may not be possible to cancel the document first within the prescribed period. In such cases, the application has to be filed within six months from the date of writing of the second document.
(4) In the case of a document endorsed under section 10-A, an application may be filed within six months from the date of such endorsement.
Section 51 : Unused stamps - Certain special exemptions in case of banks etc. corporates:
Any banker, or an incorporated company, or any other body corporate, may have certain documents printed on stamp papers. In cases where the printed documents are not useful to the concerned banker, organized company or body corporate, the Chief Controlling Revenue Authority or the Collectors authorized by the concerned authority have the authority to refund the stamp value of the documents without limit of time.
However, the concerned authority should be satisfied that stamp duty has been paid on the said stamped documents.
Section 52 : Refund of stamp duty in respect of stamps used unknowingly :
(a) A person may, by mistake, have used a stamp of another kind, even though no stamp is prescribed to be used on a document on which stamp duty is levied. (or) may have paid stamp duty in excess of the stamp duty payable on a document. (or) may have paid stamp duty on a document without being aware of it, even though it is not liable to pay stamp duty. (or)
(b) because a document is written in contravention of the provisions of section 13, the document may be invalid under section 15; Therefore, the stamp duty used on that document may have been wasted.
In both the above cases an application can be made to the Collector within six months from the date of writing of the document concerned, or in cases where no date is mentioned within six months from the date of first signature by the person concerned. The Collector may inquire into the said application and treat the stamps which have been unknowingly used as useless stamps and if the said document is not liable to stamp duty, may be allowed to pay stamp duty properly. In other cases the stamps will be treated as damaged and their value refunded. (cancel and allow as spoiled the stamp so misused or rendered useless).
Indian Stamp Act 1899 47
Commentary
It is necessary to note the difference between this section and section 49. Section 49 applies to cases where a document is duly drawn up. However, this section applies to mistakes made in payment of stamp duty through ignorance. That is, inadvertent is the key with respect to this section. For example affixing of stamp bills, etc., even though it is specifically stated that only printed stamps should be used. However, this section shall not apply in cases where court fee stamps are affixed instead of non-judicial stamps. Because court fee stamps are required to be affixed only in connection with legal proceedings. Therefore, court fee stamps are not covered by this Act. This is noteworthy.
Section 53 : Procedure for return of value of unused stamps :
In returning (refund) the value of damaged or unusable stamps, the Collector may proceed in the following manner-
(a) Stamps of the same description (same description) of equal value may be issued to the unused stamps. (62)
(b) If deemed necessary, stamps of any other description of equivalent value may be issued. (pot)
(c) may, in exercise of its discretion, grant a sum equal to the value of the stamps (less ten paise per rupee), i.e. in cash.
Section 54: Refund of value of outstanding stamps:
A person may have some stamp papers left (this section does not apply to unused, damaged stamps). There may be no need to use those stamp papers in near future. In such cases the person can apply to the Collector asking the Collector to surrender the stamps and pay their value to him.
Then the collector -
(a) that the person, having purchased the stamp documents with the intention of using them for a purpose,
(b) that the person has purchased the said stamp documents on payment of full value, (and)
(c) the value of the stamps (excluding ten paise per rupee) may be returned to the person (in cash) if they are believed to have been surrendered to him within six months from the date of purchase.
At the same time, if the stamp so returned is a licensed stamp dealer, the Collector may return the entire value (in cash), without exception.
Commentary
For example a person may have purchased stamp documents for a contract. But due to changed circumstances, or any other reason, it may not be necessary to write the agreement. Those stamps are unnecessary. In such cases, this section provides an opportunity to surrender the stamps and recover the money spent on them.
Section 54-A : Refund of value of stamps in case of stamps of value of annas - Certain guidelines:
Notwithstanding section 54, a person may possess stamps of four annas or multiples thereof. They may have remained in usable condition rather than falling into disrepair. If such person surrenders such stamps to the Collector within six months from the date of coming into force of the Indian Stamp (Amendment) Act, 1973, he shall, in accordance with the provisions of section 14, sub-section (2) of the Indian Coinage Act, 1906, calculate their value and pay the stamp duty to that person. .
48 Karadeepika
Commentary
As this section which has lost its existence is still continuing, it is easy to understand the negligence of the rulers towards the laws. Before rupees and new paisas, coins like anas, bedas etc. were in use. Even then, even though rupees and half rupees were available, annas were valued as a standard.. because the occasion arose anyway. Let's learn about ancient coins. Because it is an amazing past history, our story. The Paisa system was pre-Rakapurvam, the primary coin was 'Kani', three kani being one ardhana (artha+ana). Two Ardhanas, i.e. Aru Kanis, are combined to form an 'Ana'. If two anas come together it is 'Beda'. Two bedas are equal to one pawal, and two pawals together are half a rupee. Two half rupees add up to one rupee. This is the story of old coins.
And when it comes to this section, in the olden days the stamps were also Ana, Beda, in that order. Since that time has passed and paisas and rupees have arrived, what should be done with the old stamps left over? It is said that if they are handed over to the collector, they will be valued at the current rupee value and will be taxed. This is the summary of this section. This is an old story that is a few decades old. And now this section is useful or useless? To exist or not?
Section 54-B : Refund in case of refugee resettlement stamps:
Notwithstanding section 54, a person shall, within six months from the date of coming into force of the Refugee Resettlement (Repeal) Act, 1978, surrender the stamps to the Collector (provided the stamps are undamaged and in a fit condition) to a Collector of equal value. The Collector has to give the stamps, or an amount equal to the value of the stamps, to the person.
However, in order to expeditiously settle such claims, the State Government may frame special procedures.
Commentary
This section is also similar to section 54-A. "Before the formation of Bangladesh, lakhs of refugees entered India from East Pakistan (East Bengal). As part of mobilizing the resources required to provide them with resettlement and other facilities, the Central Government has introduced some special stamps called Refugee Resettlement Stamps. With the formation of 'Bangladesh' and the settlement of the refugee problem, the central government withdrew the special stamp scheme. Since 1973 this section is void. But it continues.
Section 55 : Refund in case of extension of tenure of debentures:
Any debenture on which stamp duty has been paid may be extended and new debentures may be issued maintaining the same conditions as before. In such cases, on the application of the issuer of the debentures, the Collector may refund the stamp value of the old debenture, value or the stamp value of the new debenture, whichever is less. (However, such application should be filed only within one month from the date of extension of debenture).
In such cases, when the first debenture (original debenture) is filed before the Collector, the Collector has to cancel it. (as directed by Govt.)..
Explanation : A debenture shall be deemed to have been extended subject to the following conditions, notwithstanding the changes referred to below-
(a) One or more new debentures are issued in place of a single debenture (the total value of the debentures should be equal to the value of the previous debenture).
(b) Issuance of a single new debenture in place of one or more earlier debentures (the value of the debenture should be equal to the value of the earlier one or more debentures);
(c) substituting the name of the former debenture holder, the name of the new debenture holder. (and)
(d) Changes in interest rate, additions, or changes in payment date.
Indian Stamp Act 1899 49
Chapter-6
Reference and Revision
(REFERENCE AND REVISION)
Section 56 : Controller's control over Collector's powers :
(1) All the powers vested in the Collector under Chapter V, Chapter VI, and clause (a) of the first proviso to section 26 shall be subject to the control of the Chief Controlling Revenue Authority.
(2) If a doubt arises in the course of ascertaining stamp duty on a document under sections 31, 40, 41, the Collector shall prepare a statement with the particulars of the case, appending his opinion, and send the statement to the Chief Controlling Revenue Authority.
(3) The Chief Controlling Revenue Authority shall study the case and communicate his decision to the Collector. Then the Collector has to levy stamp duty accordingly.
Section 57 : Circumstances in which opinion of Chief Controller, High Court should be sought :
The Chief Controlling Revenue Authority may refer to the High Court any case referred to him under sub-section (2) of section 56, or any case otherwise brought to his notice. In that order, he may seek the opinion of the High Court on the case, stating his opinion. The related procedures are as follows.
(a) A case relating to a State shall be referred to the High Court of that State.
(b) A case relating to the Union Territory of Delhi shall be referred to the High Court of Delhi.
(c) Referral to Guwahati High Court in case of Union Territory of Arunachal Pradesh or Mizoram. (High Court of Assam, Nagaland, Meghalaya, Manipur, Tripura),
(d) If the case relates to the Union Territories of Andaman and Nicobar Islands, to be referred to the Calcutta High Court.
(e) If the case is related to the Union Territory of Lakshadweep, it should be referred to the High Court of Kerala.
(ee) If the case relates to the Union Territory of Chandigarh, it shall be referred to the High Court of Punjab and Haryana.
(EE) If the case is related to the Union Territory of Pondicherry, it should be referred to the Madras High Court. (f) If the case belongs to the Union Territory of Dadra and Nagar Haveli, it shall be referred to the High Court of Bombay.
(g) In the case of Union Territories of Goa, Daman, Diu, referred to Bombay High Court.
(2) A case referred as above shall be heard by a three-judge bench of the High Court consisting of at least three judges. If there is no unanimity among the judges of the said bench, the opinion of the majority of the members shall prevail.
50
Karadipika
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