#Tax and Stamp Law

The Madhya Pradesh High Court has ruled that trial courts lack authority to classify documents as agreements to sell under Section 38(2) of the Indian Stamp Act. Only the Collector, after a proper hearing, may determine the document’s true nature and assess stamp duty - ensuring procedural fairness and preventing prejudicial pre-judgment in property disputes.

The Punjab & Haryana High Court ruled that the six-month limitation period under Section 50 of the Indian Stamp Act for refund of unused stamp papers is a statutory bar, leaving no room for condonation of delay. Property buyers and litigants must file refund claims within the prescribed period or risk forfeiture of the entire amount.

Madras High Court holds that Sub-Registrars cannot initiate Section 33A proceedings for deficit stamp duty; only District Registrar has statutory authority.