The valuation of land for stamp duty purposes should be based on its current use on the date of execution of the deed, considering prospective use and surrounding land use.

JUDGMENT :

1. Heard Sri Imran Syed, Advocate, holding brief of Sri Tarun Agrawal, learned counsel for the petitioner and learned Standing Counsel for the State respondents.

2. Present writ petition and the connected matters have been filed against identical orders. This writ petition has been filed to challenge the order dated 29.09.2011 whereby the Additional Commissioner, Agra Division, Agra has rejected the revision filed by the petitioner against the order dated 16.09.2010 passed by the Collector, Mathura in Stamp Case No. 86 of 2007-08. Thus, deficiency of stamp duty determined at Rs. 50,500/-and penalty Rs. 3,000/-has been confirmed.

3. The petitioner had executed the subject sale deed dated 18.06.2007 and purchased 0.248 hectare of agricultural land in Gata No. 257/2, 265 and 266 at Village -Jaint, Mathura for a sale consideration of Rs. 7,34,600/-. Against the circle rate (for agricultural land) prescribed at Rs. 6,00,000/-per acre, the petitioner valued the subject sale deed at Rs. 12,00,000/-per acre. Accordingly, stamp duty Rs. 73,500/-was paid.

4. Four months after execution of the subject sale deed, the petitioner was visited with a notice issued under Section 47-A of the Indian Stamp Act, 1899 (hereinafter referred to as the 'Act'). The petitioner responded to the notice thus -on the date of purchase and even on the date of reply furnished by it, the land in question was of agricultural use only. No declaration under Section 143 of the U.P.Z.A. & L.R. Act, 1950 had yet been applied for. The allegation of land being of residential use was specifically denied and it was asserted, there was standing crop on the land.

5. In such circumstances, a spot inspection was carried out on 15.04.2009 and its report was submitted on 19.04.2009. In that, the Sub-Divisional Magistrate, Mathura confirmed the objection set up by the petitioner of land being of agricultural use only. Further, the basis of the reference made being an exemplar agreement to sell, it was stated to be not comparable.

6. On objection of the revenue authorities, that report was not accepted and a further report was called. The second report dated 29.01.2010 was submitted by the Additional District Magistrate (Law & Order), Mathura. He referred to the subsequent revision of circle rate of agricultural land w.e.f. 01.09.2007, whereby the minimum rates prescribed for payment of stamp duty on agricultural land in Village -Jaint, was revised to Rs. 15,00,000/-per acre. Reference was also made to an agreement to sell dated 05.05.2007 executed in favour of a corporate entity, for consideration of Rs. 53,70,370/-, for land ad measuring @ Rs. 1,800 per sq. mtr.

7. The objection raised by the petitioner to the applicability of the revised circle rates and the registered agreement to sell were rejected. Vide impugned order dated 16.09.2010, the Collector, Mathura determined total stamp duty payable on the subject deed at Rs. 1,24,000/-. Accordingly, he determined deficiency of stamp duty at Rs. 50,500/-and imposed penalty Rs. 3,000/-. This order has been confirmed in revision.

8. Having heard learned counsel for the parties and having perused the record, in the first place, the principle to be applied in such a case has been considered in a three -Judge Special Bench decision of this Court in Smt. Pushpa Sareen Vs. State of U.P., 2015 (3) ADJ 136, wherein, amongst others, the following question was framed :

"(2) Whether the Collector Stamps has power to fix the valuation of a plot on the assumption that the same is likely to be used for commercial purposes, and whether the presumed future prospective use of the land can be a criterion for valuation by the Collector;"

9. Answering the above question, the Special Bench made following pertinent observations :

"20. Now insofar as the second question is concerned, the issue posed for consideration before the Court is whether the Collector has the power to fix the valuation of a plot on the assumption that it is likely to be used fo