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"Rule 7. Procedure on receipt of a reference or when suo motu action is proposed under Section 47-A--
(1) On receipt of a reference or where action is proposed to be taken suo motu under Section 47-A, the Collector shall issue notice to parties to the instrument to show cause within thirty days of the receipt of such notice as to why the market value of the property set forth in the instrument and the duty payable thereon be not determined by him.
(2) The Collector may admit oral or documentary evidence, if any, produced by the parties to the instrument and call for and examine the original instrument to satisfy himself as to the correctness of the market value of the subject-matter of the instrument and for determining the duty payable thereon.
(5) If, as a result of such inquiry, the market value is found to be fully and truly set forth and the instrument duly stamped according to such value, it shall be returned to the person who made the reference with a certificate to that effect. A copy of such certificate shall also be sent to the Registering officer concerned.
(6) If, as a result of such inquiry, the market value is found to be undervalued and not duly stamped, necessary action shall be taken in respect of it according to relevant provisions of the Act."

18. From a perusal of Rule 7 of the Rules 1997 it emerges that on receipt of reference or where action is proposed to be taken suo motu under Section 47A, the Collector shall issue a notice to the parties requiring them to show cause as to why the market value of the property set forth in the instrument and the duty payable thereon be not determined by him. The Collector may admit oral or documentary evidence, if any, produced by the parties to the instrument and may also call for and examine the original instrument to satisfy himself regarding the correctness of the market value of the subject matter of the instrument for determining the duty payable. The Collector may also call for information or records from any public office, officer or authority or examine and record the statement of any public officer or authority and inspect the property. It is after considering the representations of the parties and examining the records and other evidences that the Collector is to determine the value of the subject matter of the instrument and the duty payable.

In the instant case, the petitioner is one time petty purchaser of immovable property and is not in business of real estate. She is not a property dealer and is not regularly purchasing or selling immovable properties. Thus, imposition of penalty upon her may not act as a deterrent to her as she is not likely to enter into any such transaction in future.
The authorities below have not recorded any finding that the petitioner has deliberately not set-forth the market value of the property in the instrument and knowingly under valued the instrument to avoid payment of proper stamp duty. Merely for the reason that the stamp duty paid by her is found to be deficient can not by itself be a ground for imposing penalty, particularly, in the absence of any finding that there was intention to evade proper stamp duty.