IMPORTANT POINT
The value of land is to be considered as on the date of the transaction and not on the presumption that it may in future be used for residential or any other purposes.

Hon’ble Vineet Saran, J.—The petitioner had purchased certain agricultural land measuring 11 Biswas (1254 Sq. meters). According to the petitioner, the said land was purchased for Rs. 1,65,000/-. The stamp duty on the said sale price, which amounts to Rs. 16,500/-, had been paid by the petitioner. However, assessing that the land was undervalued and the stamp duty paid was insufficient, the Sub-Registrar, Phulpur, district Allahabad impounded the document and referred the matter to the District Magistrate, Allahabad under Sections 33 and 47-A of the Indian Stamp Act. By the order dated 5.8.2002 the Collector, Allahabad assessed the value of the land in question at the rate of Rs. 700/- per Sq. meter which was the minimum price as per the circle rate for residential plots of the area; which was between Rs. 700/- and 800/- per Sq. meter. Accordingly, the price of the land was assessed to be Rs. 8,77,800/-. Challenging the said order, the petitioner filed a revision before the Commissioner, Allahabad Division, Allahabad which was dismissed by order dated 9.9.2002. Aggrieved by the aforesaid orders dated 5.8.2002 and 9.9.2002 passed by respondents No. 3 and 2 respectively, the petitioner has filed this writ petition.

2. I have heard learned counsel for the parties and perused the record. Counter and rejoinder affidavits have been exchanged between the parties and with the consent of the learned counsel for the parties, this writ petition is being disposed of at the admission stage itself.

3. The contention of the learned counsel for the petitioner is that the land, when purchased, was not being used for residential purposes but was an agricultural land and was also registered in the revenue records as agricultural land and it was not even declared as ‘abadi’ land under Section 143 of the U.P. Z.A. and L.R. Act, 1950 for being used for residential purposes. It has thus been contended that the circle rate, meant for the land being used for residential purposes, would not be applicable in the present case.

4. On a perusal of the impugned orders, it is clear that the authorities have treated the land in question to be one for residential purposes on the ground that the land in the neighbourhood of the disputed property has been acquired by the U.P. Awas Evam Vikas Parishad for raising housing colonies. The authorities below have also stated that the land has potential of being used for residential purposes and hence the circle rate, as determined by the Collector, Allahabad for residential land of the area, would be applicable for valuing the land. Such presumption of the authorities is not tenable in law. The value of the land is to be considered as on the date of the transaction and not on the presumption that it may, in future, be used for residential or any other purposes, and on such presumption, charge stamp duty after assessing the value of the land, as if it was for residential purpose. It has not been found by the authorities that the land in question, when purchased, was not agricultural land. In such a situation, the assessment of the price of the land for the purpose of payment of stamp duty, treating it to be residential plot and charging the stamp duty on the basis of circle rate fixed by the Collector, Allahabad is totally unreasonable and liable to be set aside.

5. Learned Standing Counsel has however stated that as per Article 23 of Schedule 1-B of the Indian Stamp Act, 1899 as amended by the State of U.P., stamp duty is to be charged on either the sale price or the market value of the land, whichever is higher. The sale price of the land in question as declared by the petitioner is Rs. 1,65,000/-, on which stamp duty has already been paid. The market value of the land in question has not been considered by the authorities below, except for applying the principle of circle rate for residential plots, which is not tenable for reasons mentioned above, as the land, when purchased, was agricultural land. As such, the