The High Court · 2025

THE HON'BLE SRI JUSTICE K.SARATH WRIT PETITION No. 17056 of 2O25 ORDER: FIeard Iearned colrnsel lor the petitioner and learned Assistant Government Pleader for Stamps and Registration for thc respondents. With their consent, this Writ Petition is disposed o[ at thc stage of admission itself.

2. Learned counsel for the petitioner submits that while dealing with the similar issue on today 1. e. O1.O7.2025, this Court has passed order in W.P.No.l.7O37 ol 2025 and requested to pass similar order in this matter t

3. In terms of the order passed in W.P.No.l7O37 of 2025 dated Ol .O7.2025 and for the reasons alike, this writ 1 I petition is disposed of by setting aside the impugned notice No.169 12025 dated 06.O5.2025, issued by the respondent No.3-Sub Registrar and this order does not preclude the respondent authorities, if they want to take appropriate 2 action for recovery of deficit stamp duty fron tht: pelitioner by following the provisions under the Incian Stamp Act,

1899. No order as to costs 4 Registry is directed to annex copy oI the order in !V.P.No.l7O37 ol 2025 dated 01.O7.2025 along wi:h tl-ris order.

5. I\4iscellaneous petitions, rf any, pendirlg in ttris v,,rit petition, shall stand closed. //TRUE COPY// SDT.M. OSMAN ALI BAIG iR'\'"I-1Y::GISTRAR I l', U sEcnoN oFFtcER Saifabad, T.S.,Hyderabad '1 . The Pr ncipal Secretary (Stamps and Registration) Set:retaria!. Builcings, 2. The Co'nmissibn'er and lnspector General of Registrati')n and Stamps, Telangana Registratton Bhavan,4th and 5th Floor, Nizr;rmshal'i Road, Osmangunj, M J Market, Hyderabad- 500q91 e. The Sub-R6giskar, Narapaliy, Medchal-Malkajgiri Distr ct 4. The District Registrar, Sthmfs and Registration Depart-nent, Medchal- -. Malkajgiri District

5. One Ce to SRl. E. SREENIVASA RAO, Advocate [oPJC] 6. Two CCs to GP FOR STAMPS AND REGISTRATION ,High Court for the State ofTelangana at Hyderabad [OUT]

7. Two CD Copies 1WBM To, t I HIGH COURT DATED:01 10712025 ' .::=\ --/-r,l\\ F.o( 16 sEP il6 / ,.) :. \- .\ C) a'\ .:i ,i,\ ,/ Es - 1 'r:',i .t) ORDER WP.No.17056 ot 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS @ CI d- 1\vr THE HONOURABLE SRI JUSTTCE K.SARATH WRIT PETITION No.17O37 of 2025 ORDER: Heard learned counsel appearing 'for the petitioner and Assistant Government Pleader lor Stamps and Registration lor the respondents. With their consent, this writ petition is taken up for disposal at the stage of admission itself.

2. Learned counsel for the petitioner submits that this writ petition is filed questioning the action of the respondent No.3-Sub Registrar, Narapally, Medchal- Malkalgiri District in issuing Notice No.l67 /2025 dated 06.O5.2025 demanding stamp duty amount of Rs.1,61 ,340/ 1n respect of Deed of Rectification dated ll.lO.2024 bearing Document No.9754 of 2024 presented by the petitioner, which ls registered by the respondent No.3 Sub Registrar, Narapally.

3. Learned counsel for the petitioner submits that the petitioner firm is in the business of real estate which 2 .SK, J wP 17037 2025 develops the lands into residential plots and constructs residentizil apartments and the petitioner i-r:; d entere<l into a Developrrrent Agreement-Cum-lrrevocable C)enerill Porver of Attorney rrlde Document No.2665 12020 dated 18.01\.2O2O, with one Mr. B.sanjeeva Reddy, who is the land c,wnt:r of an Agricultural Land admeasuring Ac.0.20 guetas situated in Sy.No.825/A at Korremula Village, Venkata;:ur Gram Panchayat, Ghatkesar Mandal, Medchal-M,r1kajg;iri I)istrict and the same \\'as registered in the offi:e of thr: Sub- Registrar Narapally. He further submits that in the said Development Agreement dated 18.O3.2O2O, a typrographical error has been crept, wherein it is mention::d thret the land owner is entitled lor 58'/r, of the residcntii'-l plots and the petitioner is entitled to retain 42'% of the resridential plots in the develrped layout, which should actuall',, be in the ratio of 54"k : 46uh. In view of the same, the peti-ioner as well as the land owner have executed er Deed of Rectilication for correctiorr of the percentage of share as wel: as ilrclusion of the GPA powers in Document No.97'|>1 l2Ct24 dated tt.to.202.4 SK, J wP 17037 2025

4. Learned counsel for the petitioner submits that while it being so, the respondent No.3 had issued an impugned notice No.167 12025 dated 06.05.2025, stating that during the course ol the Internal Audit Report for the period July 2024 to October-2O24, an amount of Rs.1,61,34O1- has been detected as deficit stamp duty in respect of Document No.9754 /2024 and demanded the petitioner to pay the Stamp Duty to tune of Rs.1,61,34O/- and if not paid, a charge would be imposed on the subject property under Section 48 of the Indian Stamps Act.

5. Learned counsel for the petitioner further submits that the said impugned notice was issued without issuing any show cause notice to the petitioner or calling for an explanation from him, which is contrary to Section 41-A of the indian Stamps Act and requested this Court to allow the writ petition by setting aside the impugned notice No.16712025, dated 06.05.2025 issued by the respondent No.3.

6. On the other hand, learned Assistant Government Pleader for Stamps and Registrations basing 4 SK, J wP 17037 2025 on the written instrrrctions submitted by the .respondent No.3-Sub Registrar uide Lr.N o.2 | 6 I 2025 der.ed 26.06.2025, submits that a Deed of Rectification vide Document No.9754 12024, dated LO.IO.2O24 was executed by the petitioner and his vendor lor an alt,:ratic,n of the apportionment of the developing areas as ;'>4"k : 46"/o from 58'h : 42'% along with the inclusion of GPA powers/clauses which were omitted in the Development ,'\gree ment-cum- GPA. Learned Assistant Governielent Pleader for Stamps and Registration further sub rnits that the correction of the ratio of the developing larrds between the land owners and the petitioner is 'material' alteration, which attracts the stamp duty under Ser:tion 41 of the Indian Stamps Act, 1899. In the rer:iiflication deed submittecl by the petitioner and the land ou,ner, it is clearly mentioned that the subject land is an agricrrltureil land and 1S being converted into non-agriculturai lan<1 in Nala proceedings No.2i0OO1354 1, dated i5.01.1,)02 1, issued by the Tahsitdar & Joint Sub Registrar, Ghatkersar Nlandal and 5 SK, J wP 17037 2025 the same has been pointed out in the Internal Audit Report. Basing on the Internal Audit Report, the respondent No.3- Sub Registrar has issued Notice No.167 /2025, dated

06.05.2025 for coliection of the deficit Stamp Duty amount of Rs.7,67,34O1 , rvhich was a loss of revenue to the Government and as such there is no illegality and arbitrariness in the notice dated 06.05.2025, issued by the respondent No.3 and requested this Court to dismiss the present writ petition. B. After hearing both sides and on perusing the entire material available on record, this Court is of the considered view that there is no dispute with regard to the registration of the document presented by the petitioner with their vendor in Document No.2665/2O2O dated

18.O3.2O2O and also Deed of Recti{ication bearing Document No.9754 12024 dated 17.1O.2O24. There is no dispute with regard to the facts of the subject document. The respondents have issued impugned Notice No.l67 12025 dated 06.05.2025 for payment of deficit stamp duty with regard to the Rectification Deed executed t T I T f 6 SK, J wP 17037 2025 by the petitioner and their vendor. Withotrt following the rules prescribed under Section 41 of the Intlian Stamp Act' the respondent No.3 has issued impugne'd notice dated 06.05.2Oi15, which is based on the Internal ''\udit Report for the period of Jlly-2O24 to Octobe r-2O24 and directed the petitioner to pay deficit stamp duty of Rs1,6 1,3401- for execution of the Document bearing No'97i14 12024 within seven (07) days, if not, a charge rvill be crer'rted :rgainst the subject property under Section 48 of thc Iniian lStarnp Act,

1899. g. Section 41-A of the Indian Starrps Ar:t, 1899 is extracted hereunder " Sectio,1. 47-A - Recoue ru of stqmo dutu not leuiea' ot shp4-l.epted: (1) Where after the commencentent of the [n,7i(1n S:amp (Andhra Pradesh Amendn'"ent) Act, -t 9tt6, ona instrunent chargeable utith duty has not l:een duly stamped. and registered bA anA registennt.l olflcer bA mistake and remarked as such bg the colk:ctor or anA audit part!1, the Collector ma.g, wlthin fiue yeors from the date of registration, serue a notice on the persoft bA uthom the rlutg tttas payable requiring htrn to shotu cause u,hg (the omount required to mcLke uo the ale'ficit stomp dutA should not be collected from hin . alotnl tuith a penaltA of three times of the deficit stamp tlr-dg) I { t 7 SK, J wP 17037 2025 Prourded that Luhere the non paAment u.tas bg reason of fraucl, collrrsion or anll wLlfulmis-statement or suppression oJ fctcts or contrauention of ang prouisions of this Act or tlrc tules nade thereunder Lxith intent to euade paqn'Lent of dutA, the Collcctor maA, LDithin ten gears front tlLe date of registretiotl, serue o notice on such person to shout cause utlttl (the amount required to make u,p the rla-ficit stemp dutA shouLd not be collected from him akntg tt itLL a penaltg oJ three times of the deJicit stamp clutq) (2) The Collector cr tlnl1 offlcer specirtca y authorized b11 hint irt t|us behalf shir.ll. af'tcr consideing the representetron tl any. rnade bq tlle person on uthom r.tolice i.s serucd tlncler sub Sectron ( 1), determine bg an order (the antount of dutg and the penalt due from such person (not being ln excess oJ the amount specifted in the notice) and thereupon such person shall pag the amount as detcrmined. On paAment of the (amount) the Collector shall ctdcl a ceftifi.cate undcr Sec. 42. (3) Ang person aqgneued by an order under sub-Section (2) tnag prefer an eppeal beforc th.e (Chief Controlling Reuenue Authorltg), Andhro Pradesh, Hgderabad uithin thre e rnontlrc .front the d,ate of such orcler. (4) Ang (amotult) pagable under this section shnll be recouered as on anear of iand reuenue."

10. On a perusal of the Section 41-A of the Indian Stamp Act, 1899, it clear11, shows that where the non- payment of stamp duty was by reason of fraud, collusion or any willful misstatement or suppression of facts or 8 SK' J wP 17037 2025 contravenl-ion of any provisions of this Ac t or the rules made thereunder with intent to evade palmt:nt of duty' the Collector may, within ten years from the date of registration, serve a notice on such person to slLow cause stating that why the amount required to mal:e up the deficit stamp duty should not be collected from him/her along with a penalty of three times-of the cleficit s;tamp duty and further a.fter issuance of the show cause notice as order. should prescriberl supra, the Collector by determiner the amount of duty and the penalty due from such person and thereupon, such person shall pay the amount as determined-

11. In the instant case, it clearly shows that the respondents have not followed the procedur'|l as l)er Section 41-A of the Indian Stamp Act, 1899 anrl a1s'l nowhere mentioned that they have followed Lhe saic:i proccdr'rre' In view of the same, the impugned notice issued by the respondent No.3 in Notice No.L67 12025 ciilted 06'O52025 forpa5rmentofd.eficitstampdutyisliabletr:'besetaside'If the respclndent authorities want to take aprpropriate action 9 SKJ wP 17037 2025 for recovery of deficit stamp duty, they have to follow the procedure as contemplated under law' 12 In view ol thc above Ilndings, this writ petition is disposed of by setting aside the impugned notice No.l67 12025, dated 06.05.2025, issued by the respondent No.3-Sub Registrar and this order does not preclude the respondent authorities, if they want to take appropriate action for recovery o1'delicit stamp duty from the petitioner by following the provisions under the Indian Stamp Act'

13. Miscellaneous Petitions, if any, pending in this writ petition shall stand closed' No order as to costs Date:01 .O7.2025 JUSTICE K.SARATH I t