JUDGMENT :

Shekhar B. Saraf, J.

1. Heard Sri Sanjay Goswami, learned counsel appearing on behalf of the petitioner and Sri Siddharth Singh, learned Standing counsel for the State respondents.

2. This is a petition under Article 226 of the Constitution of India, wherein the petitioner assails the order dated November 18, 2022 passed by respondent no.2 and the order in Appeal dated March 13, 2023 passed by respondent no.3. By virtue of these orders, the authorities have claimed additional stamp duty with regard to a gift deed of a plot of land in question on the ground that the potential of the land would increase the market value of the land. Further ground has been enumerated stating that within 200 meters of land in question there are residential areas as well as within 50 meters there is a petrol pump.

CONTENTIONS OF THE PARTIES

3. Sri Sanjay Goswami, learned counsel appearing on behalf of the petitioner has submitted that the instrument in question being a deed of gift, the entire proceedings that have been initiated by the authorities under Section 47-A (3) of the Indian Stamp Act, 1899 (hereinafter referred to as "the Act") is without any basis in law. He has submitted that the authorities concerned does not have the power under Section 47-A of the Act to reassess the stamp duty paid by the petitioner on the grounds that duty would be chargeable on the market value of the property. To buttress his arguments, he relies on the judgements in the matter of Sumit Gupta v. State of U.P. & Others reported in 2011 (3) ADJ 712; Vijay Kumar vs. Chief Controller, Board of Revenue and others reported in [2017 (136) RD 364] and Sai Janseva And Another v. State of U.P. And 4 Others (decided on February 7, 2024 in Writ – C No.5185 of 2022 [Neutral Citation No. - 2024:AHC:21964]) and submits that in the case of gift deed, the ‘value of the property’ is required to be taken and not the ‘market value’. He has emphasized the fact that under Article 33 of the Schedule 1-B of the Act, the description of the instrument wherein a gift is given the proper stamp duty is required to be paid for a consideration equal to the ‘value of the property’.

4. Per contra, counsel appearing on behalf of the respondents has relied on the inspection report to indicate that to the east of the property within 50 meters there is a petrol pump as well as agricultural activities are being carried out. He has further indicated that within 200 meters there are certain residential/commercial activities being carried out. He emphasized that the future potential of the land and the market value of the land would be more, and therefore, actual value should increase by 50%.

ANALYSIS AND CONCLUSION

5. Upon a perusal of the judgement of a coordinate Bench of this Court penned by Hon'ble Mr. Justice Pankaj Mithal, J. in Sumit Gupta (Supra) wherein it has been categorically examined whether in case of gift deed there was any application of Section 47-A, and the very concept of market value. The relevant paragraphs are delineated below:-

"The more important aspect involved in this writ petition is whether the authorities under the Act are competent under Section 47-A of the Act to determine the market value of the property referred to in the gift-deed in question for the purposes of levy of stamp duty.

A Gift-deed is chargeable to stamp duty under Article 33 of Schedule 1-B of the Act, which is reproduced as under:

Description of instrument Proper Stamp-duty

33. Gift – Instrument of, not being a Settlement (No.58), or Will or Transfer (No.62)

Hiring Agreement or Agreement of Service - See "Agreement" (No.5) The same duty as a Conveyance No.23 clause (a) for a consideration equal to the value of the property.

Note: Emphasis supplied

It provides that a gift is chargeable to stamp duty as a conveyance provided under Article 23 clause (a) for a consideration equal to the value of the property.

It may be noted that in the above Article words used are "value of the property" as distinguished from