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CS Professional · Drafting, Pleadings and Appearances · Laws relating to Drafting and Conveyancing

During the audit of a public account, an auditing officer is shown an unstamped receipt that is chargeable with a duty not exceeding ten naye paise. Under the special provision on unstamped receipts in the Indian Stamp Act, 1899 (Section 34), what may the officer do?

The officer may, in his discretion, require a duly stamped receipt to be substituted instead of impounding the unstamped receipt. This applies to receipts chargeable with duty not exceeding ten naye paise produced during audit of a public account, so impounding is not compulsory.

  1. AImpound the receipt and forward it to the Collector in every case
  2. BInstead of impounding it, require a duly stamped receipt to be substituted, at his discretionCorrect
  3. CReturn the receipt and require nothing further
  4. DOrder a penalty to be paid on the spot and then admit the receipt

Explanation

Section 34 gives the officer a discretion: where a receipt chargeable with duty not exceeding ten naye paise is produced unstamped in the course of audit of a public account, he may require a duly stamped receipt to be substituted instead of impounding. Impounding is therefore not mandatory in this case, so the option saying 'every case' is wrong.

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