Hon’ble Pankaj Mithal, J.—A lease is chargeable to stamp duty under the provision of the Indian Stamp Act (hereinafter referred to as “the Act”) in accordance with Article 35 of Schedule 1-B of the Act.

2. Article 35 of the Schedule 1-B of the Act provides for stamp duty on the lease as under:

“35. Lease, including an under-lease or sub-lease and any agreement to let or subject—

(a) where by such lease the rent is fixed and no premium is paid or delivered—

(i) .......

(ii) .......

(iii) ........

(iv) ........

(v) where the lease purports to be for

a term exceeding twenty years but

not exceeding thirty years

(vi) where the lease purports to be for

a term exceeding thirty years or in

perpetuity or does not purport to be

for any definite term

3. Under clause (v) on a lease which purports to be for a term exceeding twenty years but not exceeding thirty years stamp duty as a conveyance for a consideration equal to six times the amount or value of the average annual rent reserved is payable, whereas under clause (vi) where the lease purports to be for a term exceeding 30 years or in perpetuity the stamp duty as a conveyance equal to market value of the property which is subject of the lease is payable.

4. Thus, there is a marked distinction in payment of stamp duty on a lease for a period up to 30 years and the lease exceeding the term of 30 years. In the former, stamp duty is payable on a consideration equal to six times the rent or value of the average annual rent reserved and in the later it is payable on the market value of the property.

5. In view of the aforesaid provision the question which arises for determination in this writ petition is whether the lease under consideration, which is for a period of 29 years six months with a renewable clause, is chargeable to stamp duty under sub-clause (v) or sub-clause (vi) of clause (a) of Article 35 of the of Schedule 1-B of the Act.

6. The brief facts giving rise to the above question is that the document of lease, being document No. 836 of 2005 dated 23.4.2005 was executed by one Rahul Goel in respect of plot No. 1246 area 1296 square meter in favour of the petitioner Ashish Kumar. The lease is for a term of 29 years six months and it also contains a clause 3(b) which provides for automatic renewal of the lease for a further similar period. The aforesaid renewal clause is reproduced herein below :

“b) The LESSOR agrees that at the expiration of the said terms of 29.6 years this lease will automatically and without any further act of the parties hereto shall stand renewed for a further similar period, unless either party shall, prior to the expiration of the last mentioned term, have given to the other party three calendar month’s previous notice in writing of its intention not to renew the lease. The renewed lease will be on a monthly rent as may be mutually agreed between the parties subject to the same covenants, conditions and agreement as are herein contained including the present covenant for renewal. It being clarified that at the time of such renewal the parties shall execute fresh lease-deed.”

7. The aforesaid lease-deed was referred under Section 47-A of the Act for determining the proper stamp duty payable thereon and Stamp Case No. 2 of 2006-07 was registered on the above reference. The Assistant Commissioner vide order dated 29.8.2007 held that in view of the aforesaid renewal clause the lease is to be treated for a period more than 30 years and, as such is subject to payment of stamp duty under Article 35(a)(vi) of Schedule 1-B of the Act on the market value which was determined by applying rate of Rs. 1,600/- per square meter. Accordingly, deficiency in stamp duty of Rs. 1,65,420/- was determined and penalty of Rs. 25,000/- was imposed. Consequently, further registration charges of Rs. 4,520/- were also demanded. The aforesaid order has been upheld in appeal by the order of the Commissioner dated 29.8.2009. Thus, the petitioner has come up in this writ petition and has raise