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Issues Involved:
1. Whether the stamp duty is chargeable according to the amount mentioned in the civil court decree or on the basis of market valuation of property conveyed by the instrument of conveyance. 2. If stamp duty is to be charged on the basis of market value of the property, what should be the date with reference to which the market value of the property forming the subject matter of the instrument is to be determined? Issue 1: Stamp Duty Basis The court addressed whether the stamp duty should be charged based on the sale consideration mentioned in the civil court decree or the market value of the property conveyed by the instrument of conveyance. It was clarified that the stamp duty is to be paid according to the provisions of the Indian Stamp Act, and not based on the court fees or the Suits Valuation Act. The court emphasized that the sale consideration in the agreement to sell is not a guiding factor for determining stamp duty. The relevant date for assessing stamp duty is the date of execution of the deed. The court concluded that the stamp duty is chargeable on the market value of the property conveyed by the instrument of conveyance, irrespective of the execution by the civil court. Issue 2: Relevant Date for Market Value The court examined which date should be considered for determining the market value of the property for stamp duty purposes: the date of the agreement to sell, the date of the court decree for specific performance, or the date of the execution of the sale deed by the court. The court referred to various definitions and provisions under the Indian Stamp Act, including Sections 2(6), 2(10), 2(12), 2(14), and 17, which collectively indicate that the relevant date for determining stamp duty is the date of execution of the instrument. The court further supported this view by citing rules 340 and 341 of the Stamp Rules, which specify that the market value should be based on the date of the instrument. The court concluded that the market value for stamp duty purposes should be determined as of the date the sale deed was executed by the court, i.e., January 3, 1985. Penalty Imposition The court also addressed the imposition of penalties under Section 47-A of the Act. It was noted that prior to the U.P. Amendment Act 38 of 2001, there was no provision for imposing penalties for undervaluation. The court held that the imposition of a penalty by the Assistant Commissioner (Stamps) was without jurisdiction and arbitrary, as the relevant statutory provisions did not authorize such penalties in the given facts. The court emphasized that penalties could only be imposed where there was a deliberate attempt to undervalue the property to evade stamp duty, which was not the case here. Conclusion The court answered the first question by holding that stamp duty is chargeable on the basis of the market value of the property conveyed by the instrument of conveyance, irrespective of the civil court's involvement. For the second question, the court determined that the relevant date for assessing the market value is the date of execution of the sale deed by the court, January 3, 1985. The court also ruled that the imposition of penalties in this case was unauthorized and without jurisdiction.
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