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Section 27. Facts affecting duty to be set forth in instrument.--(1) The consideration, if any, the market value of the property and all other facts and circumstances affecting the chargeability of any instrument with duty or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.

(2) In the case of instrument relating to immovable property chargeable with an ad valorem duty on the market value of the property, and not on the value set-forth, the instrument shall fully and truly set-forth the annual land revenue in the case of revenue paying land, the annual rental or gross assets, if any, in the case of other immovable property, the local rates, municipal or other taxes, if any, to which such property may be subject, and any other particulars which may be prescribed by rules made under this Act.

_______________________________________________________________________________ Section 47-A. Instruments undervalued how to be dealt with.- (1) If the Registering Officer appointed under the Registration Act, 1908 (No. XVI of 1908), while registering any instrument finds that the market value of any property which is the subject matter of such instrument has been set forth less than the minimum value determined in accordance with any rules under this Act, he shall before registering such instrument refer the same to the Collector for the determination of the market value of such property and the proper duty payable thereon.
(1-A) Where the market value as set forth in the instrument is not less than the minimum value determined in accordance with any rules under this Act, and the Registering Officer has reason to believe that the market value has not been truly set forth in the instrument, he shall register such instrument and thereafter refer the same to the Collector for determination of market value of such property and proper duty 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, determined the market value of the property which is the subject matter of such instrument and the duty as aforesaid. The difference, if any, in the amount of duty shall be payable by the person liable to pay the duty.

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 Appellate Authority, as the case may, such property would have fetched or would fetch if sold in the open market on the date of execution of the instrument.

6. From the perusal of the aforesaid provisions, it is apparent that the sale-deed is covered under the definition of conveyance and stamp duty is chargeable as applicable to such instrument. As per Item No. 23 of Schedule I-A, the stamp duty is chargeable on the market value of the property. The aforesaid provision specifically provides that the proper stamp duty for conveyance shall be 7½ % of market value. Section 27 as substituted by M.P. Act No. 8 of 1975 w.e.f. 15-5-1975 specifically provides that consideration, if any, the market value of the property and all other facts and circumstances shall be fully and truly set forth in the document for the purposes of ascertaining stamp duty. An instrument relating to sale of immovable property is chargeable with ad valorem duty on the market value of the property and not on the value set forth. The State Government has framed rules namely M.P. Prevention of Undervaluation of Instruments Rules, 1975 of which Rule 3 provides that all the particulars to be set forth in the instrument as required by Sub-section (2) of Section 27 of the Act. Rule 3 of the aforesaid Rules reads thus: