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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ANIL KSHETARPAL, ROHIT KAPOOR
Uggar Singh – Appellant
Versus
State of Punjab – Respondent
| Table of Content |
|---|
| 1. statutory provisions governing stamp duty. (Para 2 , 4 , 5) |
| 2. supreme court rulings on stamp duty assessment. (Para 6 , 7) |
| 3. analysis of relevant case law impacting decision. (Para 8 , 9 , 10) |
| 4. determining applicability of past judgments. (Para 11) |
| 5. final determination on stamp duty assessment timing. (Para 12 , 13) |
JUDGMENT :
ANIL KSHETARPAL, J.
I Brief facts of the case:-
1. This matter has been placed before the Division Bench in view of divergence of views by the co-ordinate Benches of this Court. The short question which requires adjudication is “whether the valuation of the stamp duty should be assessed on the market rate prevailing at the time of the registration of the sale deed or when the parties entered into agreement to sell?”
II Analysis and Discussion:-
2. This Bench now proceeds to discuss and analyse the statutory provisions and judgments governing the subject of valuation. 3. Payment of stamp duty on sale deeds/conveyance deeds is governed by the Stamp Act, 1899 (hereinafter referred to as ‘1899 Act’, which has been amended not only by the Union of India but also by the States. Relevant bare provisions of the Act read as under:-
2(10) Conveyance.—“Con
Stamp duty is assessed based on the market rate prevailing at the time of execution of the sale deed, not at the time of agreement to sell.
Stamp duty on a Sale Deed must be based on the market value at the time of registration, not the consideration mentioned in the document.
Stamp duty payable on a conveyance will be in accordance with market value of subject property on date of conveyance unless consideration shown therein is more than prevailing market value.
Unregistered agreement for sale with possession, stamped as conveyance under amnesty, is principal instrument under Section 4; subsequent registered sale deed is other instrument attracting fixed dut....
Point of law: Once certificate under section 31 was issued by the respondents, they should not be allowed to reopen their own valuation after four years to say that valuation of the property is highe....
Stamp duty on sale deeds executed under court decrees for specific performance must reflect the original sale agreement value, not the current market value at registration.
In Court-ordered sales, stamp duty applies only to the sale consideration, not to market value, as established by the Transfer of Property Act.
Market value for stamp duty must reflect the actual rights transferred, not limited landlord interests.
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