Stamp duty on a gift deed is based on the property's value, not its market value, when the land remains classified as agricultural.

1. Heard Sri H. N. Singh, learned Senior Counsel assisted by Sri Pramod Kumar for the petitioner and Sri S.C. Dwivedi, learned Additional Chief Standing Counsel for the respondents. The petitioner in the writ petition is seeking quashing of the orders dated. 28.2.2013 and 4.9.2014 passed in proceedings under S.47A of the Indian Stamps Act, 1899 . Briefly stated the facts of the case are that the brother of the petitioner, namely, Pradeep Kumar executed a deed of gift in respect of his 1/3 share area 0.3286 hectares from khatauni No. 180, Khata No. 20/0.164, 21/0316, 23/0.304 and 24/0.202 (total area 1/3 of 0.986 hectares) situated at Village Noor Nagar pargana Koni, Tehsil and District - Ghaziabad. The value of the property was determined by the Collector, Ghaziabad for Village Noor Nagar at Rs.1,60,00,000/- per acre and, therefore, determining the value of the property at Rs.1,29,95,000/-, stamp duty of Rs.9,10,000/- was paid by the donor, Pradeep Kumar. On 21.2.2011, inspection of the property was done by the ADM (Finance and Revenue), Ghaziabad in which he has recorded that on the date of inspection, the land was found to be vacant although in the near about area private builders are developing a township and since stamp duty has been calculated treating the land as agricultural land, therefore, proceeding under the Stamp Act needs to be initiated. Upon this a notice was issued to the petitioner on 7.4.2011 by the ADM (Finance and Revenue), Ghaziabad.

2. The petitioner filed his objections, Annexure - 5 to the writ petition, and his case was that the land was agricultural land and in the revenue records also it has been recorded as agricultural land and treating value of the land to be Rs.1,29,95,000/-, the stamp duty of Rs.9,10,000/- was paid by the donor i.e. Pradeep Kumar, brother of the petitioner. After hearing the parties the impugned order has been passed on 28.8.2013. The Assistant Commissioner's (Stamps) has held that the land in question though lying vacant on spot inspection but because there is abadi around it and builders are building a township and development works are going on, therefore the market value of the land is much higher and stamp duty cannot be calculated at the rate applicable to agricultural land. The Assistant Commissioner has therefore, assessed the deficiency of stamp duty at Rs.8,49,600/- with a penalty of Rs.50,000/- totalling to Rs.8,99,600 with interest @ 1.5% per annum. Aggrieved the petitioner preferred an appeal, which has also been rejected by the appellate authority by order dated 4.9.2014.

3. The submission of Sri H.N. Singh, learned Senior Counsel for the petitioner is that when the admitted position based upon spot inspection is that the land was vacant and there is no notification under S.143 of U.P. Zamindari Abolition and Land Reforms Act, 1950 converting the land from agriculture to non - agriculture, the stamp duty on the land in question could not have been determined treating the market value of the land to be residential. He further submitted that the land was alienated by Pradeep Kumar to his brother Vijay Kumar, the petitioner by way of gift deed and therefore, in terms of Schedule I (33), the duty would be the same as for Conveyance (No. 23). Item No. 23 speaks of value of consideration for such Conveyance. The submission of the learned Senior Counsel is that stamp duty of ` 9,10,000/- was paid by the donor computing the value of the land at Rs.1,29,95,000/- and it was based upon a calculation of the value of land as determined by the Collector as mentioned in the gift deed itself, therefore, t