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IN THE HIGH COURT OF ALLAHABAD
HON'BLE PIYUSH AGRAWAL, J.
Mohammad Aqeel - Petitioner
Versus
State Of Uttar Pradesh And Others - Respondents
Writ C. No. 29706 of 2021
Decided On : 31-07-2024
STAMP ACT - AGRICULTURAL LAND DISPUTE - The court addressed the validity of orders under section 47-A(3) of the Indian Stamp Act regarding the classification of land as agricultural versus residential. It emphasized the need for evidence-based decisions, highlighting the lack of consideration for existing revenue records and the presence of standing crops, ultimately quashing the impugned orders and remanding the case for fresh consideration.
Fact of the Case:
The petitioner challenged orders from the Board of Revenue and the Assistant Commissioner (Stamps) regarding the classification of land purchased as agricultural, which was later deemed residential based on an ex parte report.
Finding of the Court:
The court found that the impugned orders were passed without adequate consideration of evidence, including revenue records and reports indicating agricultural use, leading to contradictions in the classification of the land.
Issues: Whether the classification of the land as residential was justified based on the evidence presented, and whether the impugned orders violated principles of natural justice by disregarding relevant material.
Ratio Decidendi: The court held that decisions under the Stamp Act must be based on substantial evidence and proper consideration of all relevant records, including khasra entries, and that ex parte reports without corroborating evidence are insufficient for classification changes.
Final Decision: The court quashed the impugned orders and remanded the matter back to the Assistant Commissioner of Stamps for reconsideration, ensuring all stakeholders are heard.
JUDGMENT :
Hon'ble Piyush Agrawal, J.
Heard learned counsel for the petitioner and learned ACSC for the State respondents.
2. The instant writ petition has been filed challenging the impugned order dated 04.08.2021 passed by the Board of Revenue, Uttar Pradesh at Allahabad in Stamp Appeal No. 886/2014-15 as well as the impugned order dated 06.01.2014 passed by the Assistant Commissioner (Stamps) in Case No. 1360/stamp/2011/1581 under section 47-A(3) of the Indian Stamp Act.
3. Learned counsel for the petitioner submits that the land in dispute is recorded as agricultural land. On 31.01.2011, a sale deed was executed after paying requisite stamp duty. On 17.02.2011, the Sub Registrar submitted a report stating therein that the land in dispute is a residential land and the stamp duty is payable accordingly. On the basis of the said report, proceedings under section 47-A(3) of the Stamp Act were initiated against the petitioner, which was transferred to the Assistant Commissioner (Stamp) (Second), Lucknow for disposal. On 13.10.2011, the petitioner filed objection. On 06.01.2014, the respondent no. 3 passed the impugned order holding the disputed plot as residential land and accordingly, imposed stamp duty, along with interest and penalty. Aggrieved by the said order, the petitioner preferred appeal, which has been dismissed vide impugned order dated 04.08.2021 without considering the reports which were in favour of the petitioner. Hence, this writ petition.
4. Learned counsel for the petitioner further submits that the report of the Sub Registrar dated 17.02.2011 is based on no evidence, but assumption and against the revenue records. He further submits that the impugned orders have been passed without considering the khasra entries of the disputed plot prepared by the revenue authority. He further submits that in the objection, the petitioner has specifically stated that various crops of wheat, etc. are being grown, but without considering the material on record, the impugned order has been passed. He further submits that the report also shows that the land in question is for agricultural purposes. He further submits that no weightage was given to the khasra -khatauni annexed by the petitioner while passing the impugned orders.
5. Per contra, learned ACSC supports the impugned order.
6. After hearing learned counsel for the parties, the Court has perused the record.
7. It is not in dispute that the land was purchased on 31.01.2011 as agricultural land and on the basis of an ex parte report, proceedings under section 47-A(3) of the Stamp Act were initiated against the petitioner. The petitioner has brought on record the evidence to show that standing crops were there over the land in dispute, which is evident from the khasra -khatauni, but no due weightage was given while passing the impugned orders. The perusal of the reports prepared on 26.04.2013, 06.05.2013, 22.06.2013, 30.07.2013, 13.09.2013 and 20.09.2013 would reveal that there are material contradictions in respect of the residential activities over the land in dispute, but no sight map/Nazari Naksha was prepared and the impugned orders were passed without considering the aforesaid fact.
8. In view of the aforesaid facts & circumstances of the case, the impugned order dated 04.08.2021 passed by the Board of Revenue, Uttar Pradesh at Allahabad in Stamp Appeal No. 886/2014-15 as well as the impugned order dated 06.01.2014 passed by the Assistant Commissioner (Stamps) in Case No. 1360/stamp/2011/1581 are hereby quashed.
9. The writ petition succeeds and is allowed.
10. The matter is remanded back to the Assistant Commissioner of Stamps (Second), Lucknow to reconsider the issue afresh after hearing all stake holders without a period of three months from the date of receipt of a certified copy of this order.
11. Any amount deposited during the pendency of the proceedings, shall be subject to the outcome of the order passed by the Assistant Commissioner of Stamps.
AI
The classification of land for stamp duty purposes must be supported by credible evidence and proper consideration of existing agricultural use, as per the provisions of the Indian Stamp Act.
The classification of land for stamp duty purposes is determined by actual use and prior transactions, not merely by the absence of construction.
An administrative order imposing additional duties must be based on a reversal of prior factual findings to ensure legality and fairness.
The nature of land is determined by its potential use and prior registrations, with presumption of residential use upheld.
The interpretation of spot inspection reports and the requirement for conclusive evidence in determining land classification for stamp duty purposes.
The classification of land for stamp duty must be based on actual use and verified inspections, not merely on surrounding residential activities.
The central legal point established in the judgment is that if there is no declaration of the land being abadi and the actual user of the land is agricultural, the stamp duty treating the nature of l....
The determination of deficiency of stamp duty should be based on the market value of the property on the date of the instrument and surrounding construction activities, without relying on hypothetica....
The classification of agricultural land cannot be altered based solely on its proximity to commercial activity without proper legal declaration.
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