Hon’ble Sunil Hali, J.—A partnership firm in the name and style of M/s Guru Govind Singh Rice Mills was constituted on 25.3.1975 consisting of petitioner and six others partners. The said partnership stood dissolved on 29.10.1984. Fresh partnership deed was executed by the petitioner with one of his ex-partner and three other partners of the dissolved firm in the name and style of M/s UP National & General Rice Mills. One of the partner died as a consequence of which the firm was dissolved. In this behalf a deed of dissolution was executed between the petitioner and four partners and legal heirs of the deceased person namely Sri Shyam Das. The deed of dissolution was executed on 20.9.2002 between four partners Sri Anokh Singh, Sri Darshan Singh, Sri Balveer Singh and Sri Rajesh Kumar and Sudesh Kumar and Ramesh Kumar, both sons of deceased Shyam Das. On account of dissolution of the firm Sri Anokh Singh and Sri Darshan Singh consequent upon the dissolution of firm received a sum of Rs. 1,80,308.91 and Rs. 1,55,25/- towards their share in the capital of the dissolved partnership firm M/s UP National & General Rice Mills. The other two partners namely Balbir Singh and Rajesh Kumar received their shares in the shape of assets i.e. land, building, plant, machinery. After dissolution of the firm, petitioners and other partners Rajesh Kumar entered into a fresh partnership in the name and style of earlier dissolved firm namely UP National & General Rice Mills, which is in existence. Report was submitted by the Deputy Registrar of Stamps, District Rampur to the Collector, Stamps, Rampur in respect of receipt of assets by the petitioner consequent upon dissolution of the partnership firm. On the dissolution of firm, petitioner had received his share of capital in the form of land, plant, building and machinery. Report of the Deputy Registrar (Stamp) suggests that there was shortage of levy of stamp of 84,990/- and shortage in the registration fee amounting to Rs. 14,660/-. On receipt of the report, Addl. Collector (F & R) Rampur issued a show-cause notice to the petitioner as to why the levy of stamp duty and registration fee as suggested by the Deputy Registrar (Stamp) be not realised upon the receipt of the assets as a result of dissolution of the partnership firm. A detailed reply was filed by the petitioner indicating that there was no transfer of movable or immovable property while effecting the dissolution of the firm. It was purely a share received by the petitioner upon the dissolution of the partnership as such did not constitute ‘Conveyance’ as defined under Section 2(10) of the Indian Stamp Act. It is also indicated in the reply that as a result of such dissolution there was no sale of assets by other partners to the petitioner as alleged in the report forwarded by the Deputy Registrar (Stamps). The plea of the petitioner was rejected by the Addl. Commissioner, Stamp as a consequence of which stamp duty of Rs. 84000/- and registration fee of Rs. 4800/- and penalty of 10,000/- amounting to Rs. 99,878/- was sought to be recovered from the petitioner holding the said receipt of assets by way of ‘Conveyance’ as contemplated under Section 2(10) of the Stamp Act vide order dated 8.9.2004. Appeal against this order was preferred which stood dismissed vide order dated 24/25.9.2005 passed by the Commissioner, Moradabad Division, Moradabad. It is this order which is subject-matter of challenge before this Court.

2. I have heard learned counsel for the parties and perused the material on record.

3. The impugned levy is sought to be recovered from the petitioner by invoking the explanation to Section 2(10) of the Indian Stamp Act by holding that the receipt of the assets from the partnership on its dissolution tantamount to sale of assets of the property. In order to understand the import of Section 2(10) of the Stamp Act is quoted herein below :

“Conveyance.”

2 (10) “conveyance” includes a conveyance on sale and every instrume