MANIDHANEYAM CHARITABLE TRUST Vs. GOVERNMENT OF TAMIL NADU

JUDGEMENT

(1.) THE petitioner, a Charitable Trust represented by its Managing Trustee, has sought for a writ of Certiorarified mandamus to quash the notice issued by the second respondent on 18. 9. 2006 in Na. Ka. No. 158/06 and also to direct the second respondent to return the document viz. gift deed registered on 10. 07. 2006 by giving effect to the remission as per G. O. 1224/revenue dated 25. 4. 1964 read with G. O. Ms. No. 224/commercial Taxes (J1)/dated 11. 12. 2003.

(2.) THE Court heard the learned counsel on either side.

(3.) THE case of the petitioner, as could be seen from the affidavit filed in support of the petition and also after hearing the learned counsel for the petitioner, is that he is the Managing trustee of the trust in question, and the petitioner was registered vide the Deed of Declaration of Trust dated 24. 1. 2005. It is also registered as a Public Charitable Trust under Section 12aa of the Income Tax Act 1961 by the Director of Income Tax (Exemptions) vide his order No. DIT (E) No. 2 (970)/04-05 dated 18. 5. 2005 and approved by the Director of Income Tax (Exemptions) under Section 80g of the Income Tax Act, 1961, vide his order No. DIT (E) No. 2 (970)/04-05 dated 18. 5. 2005 for the period from 17. 02. 2005 to 31. 03. 2006. Further,the petitioner had filed an application for renewal of the approval under Section 80 (G) before the Director of Income Tax (Exemptions) on 6. 2. 2006, well before the expiry of the approval and the same was also approved by the Director of Income Tax (Exemptions) for the period from 1. 4. 2006 to 31. 03. 2006 vide his order No. DIT (E) No. 2 (970)/04-05 dated 22. 08. 2006, that one Sa. Duraisamy, the sole and absolute owner of the property comprised in T. S. No. 66/9 (Old S. No. 33), Block No. 20,velachery Village, Mambalam-Guindy Taluk, Chennai District, measuring an extent of 40. 70 cents, being 17,746 sq. ft. of land with the building measuring about 5457 sq. ft. built thereupon, has executed a gift deed on 10. 07. 2006 transferring the property to the petitioner. At the time when the deed of gift was placed for registration before the second respondent, the petitioner had claimed one half (50%) remission of stamp duty leviable on the above transaction of Gift in view of G. O. Ms. No. 1224/revenue dated 25. 4. 1964 read with G. O. Ms. No. 224/commercial Taxes (J1)/dated 11. 12. 2003. The second respondent had accepted the deed of gift dated 10. 7. 2006 and registered the same after payment of Rs. 2,90,300/- along with Rs. 45,250/- worth stamp paper, totally a sum of Rs. 3,35,550/- towards stamp duty, being 50% of the stamp duty on the value of the property. The second respondent issued the impugned notice on 18. 9. 2006 demanding a sum of Rs. 4,39,983/- being the remission of Stamp Duty claimed by the petitioner on the ground that the approval under Section 80g of Income Tax Act was granted subsequent to the registration of the Gift deed. The petitioner has also filed a petition dated 6. 10. 2006 before the third respondent praying for clarification in this regard and direction to the second respondent to return the gift deed dated 10. 07. 2006, by accepting the claim of the petitioner. But they have not passed any order thereon. Under compelled circumstances, the petitioner has filed the present writ petition before this Court.