Law:

Section:

Section 288 of the Income-tax Act, 1961, read with sections 2(p) and 3 of the Kerala Stamp Act, 1959 - Authorised representative - Appearance by - Chartered Accountant was authorised in terms of section 288 by means of a power of attorney - Whether stamp duty is payable on such 'power of attorney' if it is executed in territories of Kerala - Held, yes FACTS The Income-tax Department's case was that when a Chartered Accountant is authorised in terms of section 288, the authorisation, if in the form of power of attorney, is required to bear stamp duty of Rs. 50. It was further contended that an authorisation of a Chartered Accountant or an income-tax practitioner by a person to represent his case in income-tax proceedings is not an instrument subject to payment of court fees under the Court Fees Act. That being so, such an authorisation could only be considered as a 'Power of Attorney' as defined in section 2(p) of the Kerala Stamp Act, 1959 in respect of which stamp duty is payable as specified in article 44 of the Schedule thereof. Accordingly, while a Vakalatnama signed by an advocate is chargeable to court fee under the Court Fees Act, an authorisation in the case of a Chartered Accountant or an income-tax practitioner is only a 'Power of Attorney' which is subject to stamp duty under the Stamp Act. On writ : HELD The argument that definition of the 'instrument' under section 2(j) of the Kerala Stamps Act is not intended to take in a power of attorney presented by an accountant does not at all sound valid. By the document under consideration, it cannot be disputed that a right is created in favour of an accountant to represent the executant, as recognised by section 288. Under section 3 of the Stamps Act, it is essential that the instrument mentioned in the Schedule, in the territories of the State of Kerala, is chargeable to duty. It cannot be taken, therefore, that the power of attorney is not a document that is not envisaged as chargeable. [Para 14] The fine distinction between the revenue collected by the Court Fees Act and the Stamp Act, even if real, can be of no solace, since the bar is in absolute terms. The Legislature was not unaware that officers…

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