Section 27 Indian Stamp Act
Section 27 of the Indian Stamp Act 1899 is about Facts affecting duty to be set forth in instrument. It is under ‘D. —Of valuations for duty’ of CHAPTER II (Stamp Duties) of the Act.
Facts affecting duty to be set forth in instrument.
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 its chargeable, shall be fully and truly set forth therein.
STATE AMENDMENT
Assam–
Amendment of section 27.–In the principal Act, in section 27, for the words and brackets, “The consideration (if any)”, the words “the market value of the property” shall be substituted.”
[Vide Assam Act 22 of 2004, s. 4]
Amendment of section 27.–In the principal Act, after section 27, the following new section shall be inserted namely:–
“27A. Instrument of conveyance etc. under valued how to be dealt with.–(1) If the Registering Officer appointed under the Registration Act, 1908 (Central Act 16 of 1908) while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property as fixed by the Government/Collector of the district, which is subject matter of conveyance, exchange or gift had not been truly set forth in the instrument, he may after registering such instrument, refer the same to the Collector for determination of the market value of such proper and the property duty payable thereon.
(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of conveyance, exchange or gift and the duty as aforesaid, and thereupon the difference, if any, in the amount of duty, shall be payable by the persons liable to pay the duty.
(3) The Collector may, on his own motion or otherwise, within two years from the date of registration of any instrument or conveyance, exchange or gift not already referred to him under sub-section (1) call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property as set forth in such instrument, which is the subject matter of conveyance, exchange or gift and the duty payable thereon and if after such examination he has reason to believe that the market value of such property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid and thereupon the difference, if any in the amount of duty, shall be payable by the person liable to pay the duty:
Provided that nothing in this sub-section shall apply to instrument registered before the date of commencement of the Indian Stamp (Assam Amendment) Act, 2004.
(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may prefer an appeal to the Civil Judge of appropriate jurisdiction and all such appeals shall be preferred within such time and shall be heard and disposed of in such manner as may be prescribed.
Explanation–For the purpose of this Act, market value of any property shall be estimated to be the price which in the opinion of the Collector or the Civil Judge Senior Division, as the case may be, such property would have fetched or would fetch, if sold in the open market on the date of execution of the instrument of conveyance, exchange or gift.
[Vide Assam Act 22 of 2004, s. 5]
STATE AMENDMENT
Himachal Pradesh.–
Amendment of section 27.–For the words and brackets “The consideration (if any)” occurring in section 27 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter called as the principal Act), the words and signs “The consideration, if any, the market value of the property” shall be substituted.
[Vide Himachal Pradesh Act 7 of 1989, s. 2]
Orissa.–
Amendment of section 27.– In Section 27 of the principal Act, for the words and brackets “the consideration if any”, the words and commas “the consideration, if any, the market value of the property” shall be substituted.
[Vide Orissa Act 7 of 1987, s. 3]
