CWP-29042-2019 -1- 204 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-29042-2019 Date of decision: 28.07.2026 Reeta Dhawan ….Petitioner Versus State of Punjab and others ….Respondents CORAM: HON'BLE MR. JUSTICE KULDEEP TIWARI Present: Mr. Sanjeev Kumar Arora, Advocate, for the petitioner. Mr. Sahil R. Bakhsi, AAG, Punjab. **** KULDEEP TIWARI, J. (Oral) 1. The petitioner, by way of instant writ petition, as cast under Article 226/227 of the Constitution of India, challenges the validity of the order dated 08.06.2018 (Annexure P-4) vide which respondent No.3 -Collector-cum-Additional Deputy Commissioner, exercising powers vested under Section 47-A of The Indian Stamp Act, 1899 (hereinafter referred to as ‘the Act’) whereby a deficiency of stamp duty was assessed at Rs.5,28,000/- and the petitioner was directed to pay the same within a period of one month. The petitioner further challenges the order dated 11.04.2019 (Annexure P-6) passed by the Appellate Authority whereby the appeal filed by the petitioner under Section 47-A(4) of the Act has been dismissed. 2. The only ground raised before this Court challenging the validity of the order dated 08.06.2018 is that, at the time of registration of sale deed, the Sub Registrar having been satisfied that the land in question was in a SONIA BURA 2026.07.31 16:41 I attest to the accuracy and integrity of this document chandigarh CWP-29042-2019 -2- residential area, the apposite stamp duty was paid and therefore, only the sale deed was allowed to be registered. The Sub Registrar, after 1½ years and that only after the report of the Auditor, made a reference to the Collector under Section 47-A of the Act. He submits that after 1½ years no such reference could have been raised by the Sub Registrar once he had already been satisfied at the time of registration that adequate stamp duty had been paid. No further argument has been raised. 3. This Court finds no merit in the aforesaid submissions, as the reasons for rejecting the same arise from the amendment carried out in Section 47-A vide the Indian Stamp (Punjab Amendment) Act, 1982, which is reproduced as under: “Section 47-A Instruments under-valued how to be dealt with.- (1) If the market value of any property, which is the subject of any instrument on which duty is chargeable on market value as set forth in such instrument, is less than even the minimum value as determined in accordance with the rules made under this Act, the Registering Officer appointed under the Registration Act, 1908 (Central Act 16 of 1908), shall after registering the instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon, (2) On receipt of 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 under this Act, determine the value or consideration and the duty as aforesaid, and the deficient amount of duty, if any, SONIA BURA 2026.07.31 16:41 I attest to the accuracy and integrity of this document chandigarh CWP-29042-2019 -3- alongwith interest at the rate of twelve per cent per annum on such deficient amount, shall be payable by the person liable to pay the duty from the date of registration of the instrument relating to such property to the date of payment of deficient amount of the duty: Provided that a person shall also be liable to pay penal interest at the rate of three per cent per annum, if there was an intentional omission or lapse on his part in not setting forth the correct market value of such property.] (3) The Collector may, suo motu, or on the receipt of a reference from the Inspector General of Registration or Registrar of a District appointed under the Registration Act, 1908 (Central Act No. 16 of 1908), in whose jurisdiction the property or any portion thereof which is the subject matter of the instrument is situated or on the receipt of a report of audit by the Comptroller and Auditor General of India or by any other authority authorised by the State Government in this behalf or otherwise, within a period of three years from the date of the registration of an instrument, call for and examine any instrument for the purposes of satisfying himself as to the correctness of the value of the property or of the consideration disclosed and of all other facts and circumstances affecting the chargeability of the instrument or as to the true character and description thereof and the amount of the duty with which it was chargeable and if after such examination, he was reason to believe that proper duty has not been paid, he may, after giving the person concerned reasonable opportunity of being heard and after holding an enquiry in the manner provided under Sub-section (2), determine the value of the property or the consideration or the character or description of instrument and the duty with which it was SONIA BURA 2026.07.31 16:41 I attest to the accuracy and integrity of this document chandigarh CWP-29042-2019 -4- chargeable and the deficient amount of duty [if any, alongwith interest at the rate of twelve per cent per annum on such deficient amount, would be payable by the person liable to pay the duty from the date of registration of the instrument relating to such property to the date of payment of deficient amount of the duty: Provided that a person shall also be liable to pay penal interest at the rate of three per cent per annum, if there was an intentional omission or lapse on his part in not setting forth the correct market value of such property. (4) Any person, aggrieved by an order of the Collector under sub-section (2) or sub-section (3), may, within thirty days from the date of the order, prefer an appeal before the Commissioner and all such appeals shall be heard and disposed of in such manner, as may be prescribed by rules made under this Act: Explanation. For the purpose of this section, value of any property shall be estimated to be the price which in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched, if sold in the open market on the date of execution of the instrument relating to the transfer of such property.” Section 47-A(3) empowers the Collector to take cognizance of deficiency of stamp duty suo motu or on a reference from the Inspector General of Registration or Registrar of a District appointed under the Registration Act, 1908 in whose jurisdiction the property or any portion thereof, which is the subject matter of the instrument is situated or on the receipt of an audit report by the Comptroller and Auditor General of India or by any other authority authorized by the State Government in this behalf or SONIA BURA 2026.07.31 16:41 I attest to the accuracy and integrity of this document chandigarh CWP-29042-2019 -5- otherwise, within a period of three years from the date of the registration of an instrument. 4. In the instant case, the sale deed was executed on 19.06.2014 by declaring the nature of land as residential. During audit inspection, the land was found to be commercial in nature and thereby the Auditor raised objections with regard to stamp duty paid by the petitioner. On the basis of the Audit report, Sub Registrar made a reference to the Collector concerned under Section 47-A of the Act. The Collector, after providing due opportunity of hearing in view of the provisions of Section 47-A of the Act, adjudicated the issue as to whether there is a deficiency in stamp duty. The authorities concluded that the land in question is commercial in nature and thereby assessed the deficiency in stamp duty. There is no procedural error committed by the concerned authorities, which requires interference from this Court. The reference was made in pursuance of the provisions of Section 47-A of the Act. Therefore, the submissions of the petitioner that the Sub Registrar had already dealt with the matter and that the matter could not thereafter be referred to the Collector concerned, does not carry any legal weight. 5. Accordingly, the present petition stands dismissed. (KULDEEP TIWARI) JUDGE 28.07.2026 sonia Whether speaking/reasoned Yes Whether reportable Yes/No SONIA BURA 2026.07.31 16:41 I attest to the accuracy and integrity of this document chandigarh