-Report by Karan Gautum
Heard Ganesh Datt Mishra, learned counsel for the petitioner and Sri B.N. Pathak, learned standing counsel for the state-respondents.
The petitioner is an educational institution run by a society registered under the Society Registration Act, 1860, and Ram Yagya Chaudhary executed a registered gift deed of his agricultural land in favour of the petitioner’s institution on 20.9.2016. However, the Assistant Inspector General (Registration) reported that the gift deed was undervalued and the valuation was not shown on the market value. The dispute was referred to the Collector and the petitioner filed an objection. Stamp Case No.27/281/D-2016171404706 (State vs. Ram Yagya Tara Devi Chaudhary Inter College) was registered under Section 47A of the Stamp Act. The petitioner challenged the order dated 29.5.2017 and filed a Writ Petition No.3447 of 2018, granting interim protection to the effect that further recovery in pursuance of the impugned order shall remain stayed and the revision shall be decided by respondent no.1 within a period of 6 months.
This Court passed an interim order granting four weeks’ time to file the counter affidavit and two weeks to file the rejoinder affidavit. It also directed the petitioner to deposit 50% of the deficient stamp amount, which in the instant case is to the tune of Rs. 4,21,500/- and the sum of Rs. 1,00,000/- towards the amount fixed under the head of penalty, within one month from today. Any amount already deposited by the petitioner shall be adjusted towards the amount directed to be deposited. The petitioner submitted that the demand of deficient stamp duty by the respondent authorities is illegal, as according to the provisions of Section 47-A of the Indian Stamp Act, the value of the property as provided under Article 33 of Schedule I B of the Stamp Act will be applicable and the deficiency determined by the respondent nos. 1 & 2 based on market value is illegal. Counsel also submitted that the impugned orders be set aside and the writ petition be allowed.
B.N. Pathak, learned standing counsel, submitted that the impugned order has been rightly passed and that the rate for the agricultural plot cannot be fixed for payment of stamp duty. He also cited Sections 27 & 47-A of the Indian Stamp Act to demonstrate that the power has been rightly exercised by the respondents against the petitioner. He submitted that no interference is required in the matter and the writ petition is liable to be dismissed. The Court has held that on the ground of the future potential of the property, the stamp duty cannot be imposed in respect of the property in dispute. The true test for determination by the Collector is the market value of the property on the date of the instrument, as every instrument is required to be stamped before or at the time of execution.
The judgment of a learned Single Judge of this Court in Writ Petition (C) no. 66621 of 2010, Sumit Gupta vs State of U.P. and others, states that there is a difference in the language used in Article 33 of the Schedule I-B of the Act and Section 47-A of the Act when levying stamp duty on a gift-deed. The legislature has deliberately used the word “value of the property” in Article 33 while subjecting the gift to stamp duty and has refrained from using the term “market value”. This means that when the market value is not at all relevant, the provisions of the Act do not come into play which necessitates the determination of market value. This court has followed the earlier judgment of AWC 1087, Ram Khelawan alias Bachcha Vs State of U.P. and Shiva Dutt Mishra Vs. Commissioner Gorakhpur Division and 2 Others on the point of imposition of stamp duty on the gift deed in respect to the agricultural plot. Paragraphs 5,6 and 7 of these judgments.
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CITATION: WRIT – C No. – 43196/2018