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2022 Supreme(All) 308
IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
DINESH KUMAR SINGH, J.
The Assembly of God North India Balrampur and Another – Petitioners
Versus
State of U.P. and Others – Respondents
Writ (C) No. 1001107 of 2007
Decided On : 24-03-2022
Advocate Appeared:
For the Petitioners: Dhruv Mathur, D.M. Shukla.
Point of Law : Power of Collector to determine market value either on reference under Sub-section (1) or (2) of Section 47-A or acting suo motu under sub-section (4) was to determine correct market value of property. Market value of property has to be determined with reference to use to which land is capable reasonably of being put to immediately or in proximate future.
Headnote:
Indian Stamp Act, 1899 - Section 56(1-A), 27, 27(2), 47-A - West Bengal Societies Registration Act, 1961 - Uttar Pradesh Stamp (Valuation of Property) Rules, 1997 - Rules, 3, 4, 5 and 6 - Ad valorem – Writ petition - Facts affecting duty to be set forth in instrument - Under-valuation of the instrument - Petitioner no.1 claims to be a registered society under provisions of the West Bengal Societies Registration Act, 1961 having its registered office - It is a society formed by the Pentecostal believers - Object of society is to promote education at all levels for children of all communities of India through schools, existing institutions and adult literacy programmes.
Findings of court : It is admitted case of petitioners that they had bought land in question not for agricultural purposes, but for household purposes and in fact within a few months, they had started construction of houses on said land, which is evident from report of Collector - Collector (Stamp) has determined true market value of property after considering relevant factors as mentioned above in said judgment - Considering aforesaid facts, Court do not find that either Collector (Stamp) or Commissioner erred in determining true market value of property and accordingly stamp duty payable on instrument.
Result : Writ petition dismissed.
JUDGMENT :
DINESH KUMAR SINGH, J.
1. The present writ petition has been filed impugning the orders dated 29.9.2006 and 9.1.2007 passed by the Collector (Stamp), Balrampur and Commissioner, Devipatan Division, Gonda under the provisions of the Indian Stamp Act, 1899 (for short ‘the Act’)
2. Petitioner No. 1 claims to be a registered society under the provisions of the West Bengal Societies Registration Act, 1961 having its registered office at 18 Ride Street, Kolkata, West Bengal. It is a society formed by the Pentecostal believers. The object of the society is to promote education at all levels for the children of all communities of India through schools, existing institutions and adult literacy programmes.
3. The petitioner-society had purchased a land comprised in Gata Nos. 497 and 498, area 0.408 hectares situated at Village Amaya Deveria, Pargana Utraula, District Balrampur vide sale deed dated 6.1.2006. Petitioner-society paid stamp duty on a sale consideration of Rs. 24 Lakhs.
4. Deputy Registrar, Utraula in his report dated 28.2.2006 said that the land purchased by the petitioner-society had commercial use, for which the rate was fixed at Rs. 5,400/- per Sq. M. whereas the stamp duty was paid at agricultural rate of the land i.e. Rs. 3,50,000/- per acre. Total stamp duty of Rs. 1,91,000/- was paid by the petitioners’ society.
5. On 13.2.2006, spot inspection of the land in question was made and it was found that on north of the land, there was a house of one Izharul Hasan and on the south, house of Pankaj was being constructed and on west, after the pathway, houses of Raza Pajtan and Israt Husain were constructed. 50 Meters away from the land in question, petrol pump and National Modern Public Junior High School were situated.
6. Considering the use of the land, it was said that the stamp duty ought to have been paid on commercial rate. However, by concealing the material facts, deficit stamp duty of Rs. 3,12,360/- was paid. On the basis of the aforesaid report, after impounding the sale deed, a notice was issued for payment of the deficit stamp duty of Rs. 3,12,360/- to the petitioner-society.
7. The petitioners’ society in his reply submitted that the land in question was being used for agricultural purposes. There was Borewell situated on the land. The stamp duty was paid at Rs. 24 Lakhs, whereas the sale consideration was only Rs. 23,45,000/-. It was said that nature of the land in question was agricultural land and, therefore, the stamp duty on commercial rate was not payable by the petitioner-society. The petitioner-society had submitted khasra for 1413 Fasli in respect of the land in question showing land being used for agricultural purposes.
8. After the above reply, Collector (Stamp) himself along with Area Lekhpal visited the land in question on 11.8.2006. It was found that the petitioner-society had purchased the land for housing purposes. However, this fact was not clearly mentioned in the sale deed. Collector (Stamp) also noted that at the time when the land was purchased, it was said that the land would be used for household (Grihasti) purposes, but at the time of inspection, construction activities of houses were being carried out.
9. Collector (Stamp) also found that on adjacent land, residential/commercial buildings were standing. The land is adjacent to the main Public Works Department Road. It was said that the stamp duty ought to have been paid considering the future use of the land and the petitioner-society got the sale deed registered by concealing the important facts.
10. In view thereof, the Collector (Stamp) passed the impugned order dated 29.9.2006 directing the petitioner-society to make payment of the deficit stamp duty of Rs. 3,12,360/- with penalty of Rs. 1,00,000/- along with interest @1.5% per month from the date of execution of the sale-deed.
11. Aggrieved by the said order passed by the Collector (Stamp), petitioner-society filed an appeal under Section 56(1-A) of the Act before the Divisional Com
