THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in

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Stamp Duty on Agreement for Sale of Flat Between Promoter and Flat Purchaser1. In Appeal no. 395 of 1991 in writ petition No. 3693 of 1990 whiledisposing of the said Appeal and several other writ petitions the Divisions Benchof Bombay High Court has given a judgement dated 13 th February, 1992. in allthe matters the common question of law according to the Bombay High Court wasin respect of stamp duty payable under Article 25 of schedule I of the BombayStamp Act, 1958 on agreement for sell of flat by Builder in favour of FlatPurchase under section 4 of the Maharashtra ownership Flats Act, 1963 and theMaharashtra Apartment Ownership Flats Act, 1970.2. As observed by the Court the Court wanted to decide whether thedocument i.e. Exhibit A, is an ‘agreement of sale’ or ‘agreement to sell’ adocument conveying the right title and interest in the flat in favour of thepetitioner. It appears that the building in question belonged to Priyadarshini Co-Operative Housing Society, Limited and the Ownership thereof vested in the saidsociety and M/s. Century Enterprises were the Developers.______________________1. Clause (ja) was inserted, by Mah. 27 of 1985, s. 2(d), (w.e.f. 10-12--1985)
3. The Court was constructed several clauses of the said agreement. Whileconstructing the same the Court has observed that the agreement was entered intoonly on 8 th October, 1987 and possession was to be handed over by 30 thNovember, 1987, a very short time.4. The Court in para 19 of the judgement has observed that after consideringthe submission in the opinion of the court on construction of the agreement inquestion it must be held that although it has been described as an agreement tosell in effect and for all purposes it is conveyance falling under section 2(g) of theAct inasmuch as the right title and interest in the flat stands transferred in favourof the Purchaser on payment of installment provided therein.5. the court has further observed that on careful scrutiny of the document inquestion it is difficult to hold that it is a mere agreement of sale and does notcreate and right title and interest in the petitioner. The Court further held thattherefore, the said agreement in question is a conveyance and whether thepossessions given on that date or not is not the relevant and decisive factor. TheCourt therefore, held that such a document is liable to stamp duty under Article 25in Schedule I of the Act. Thus according to the court the agreement it self is aconveyance and not a deemed conveyance. It may be pointed out the court has notspecified what right title and interest by the said agreement is created in favour ofthe petitioner.Market ValueBy Amending Act 16 to 1979 this concept was first time introduced in theAct. Prior to this amendment, the stamp duty was chargeable on the amount setforth in the instrument. Thus, the basis for determining value of the property forcharging stamp duty was shifted from consideration set forth in the instrument tothe marker value.However, there is no definition of the expression “true market value.’ Inorder to prevent erosion of revenue as the parties began to undervalue urbanimmovable property to avoid proper taxes and stamp duty, this concept is beingused as a weapon to get revenue to the Government.JT 1996(6) SC 190—Smt. Prakshwati V. Chief Controlling RevenueAuthority.Under UP Stamp Rule, 1942 and SECTION 47 of Stamp Rule.Closeness to posh colony does not of itself make it part thereof.Approach of the authorities was highly vain, casual and unsatisfactory anddehors any constructive material from where it could be said that decision wasfair and reasonable.Factum of closeness to posh locality would not cast any reflection on theprice of the property.1. Supreme Court has given an important judgement on ready reckoner/guideline issued by the Stamp Authorities viz. Jawajee Nagnatham V.Revenue Divisional Officer, Adilabad and Others (1994) 4 SCC 595. TheState of Andhra Pradesh has enacted Section 47A of the Indian Stamp Act.Similarly many states have also enacted section 47A(which is like Section32A of Bombay Stamp Act) of the Indian Stamp Act. Such section 47A
Page 2 and 3: Constitutional Position -Law relate
Page 4 and 5: to values of property especially in
Page 6 and 7: If the documents creates an obligat
Page 8: Notification - Addition Officers fo
Page 11: Agreements entered into before 10 t
Page 15 and 16: and the value of in question may be
Page 17 and 18: considering the correspondence that
Page 19 and 20: eferred to in Section 47A and Rules
Page 21 and 22: includes an instrument by which a p
Page 23 and 24: 5. Instrument relating to several d
Page 26 and 27: (d)with Securities and Exchange Boa
Page 28 and 29: 2. These words were substituted for
Page 30 and 31: 3 [Provided that the clearance list
Page 32 and 33: 1 [25. How transfer in consideratio
Page 34 and 35: Provided also that, where proceedin
Page 36 and 37: (E) -Duty by whom payable30 . Dutie
Page 39 and 40: Subjective satisfaction to be on ob
Page 41 and 42: 1 [(2) (a) If any officer registeri
Page 43 and 44: 1 [Provided further that, in respec
Page 45 and 46: NotesThe section applies to eight t
Page 47 and 48: he thinks just and proper; and the
Page 49 and 50: instrument from the party and, afte
Page 51 and 52: Government or where it bears the ce
Page 53 and 54: 37. Instruments impounded how dealt
Page 55 and 56: Subjective satisfaction to be on ob
Page 57 and 58: executed, some other person was bou
Page 59 and 60: (a) the stamp on any paper inadvert
Page 61 and 62: 50. Allowance for misused stamps.(1
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(2) The Chief Controlling Revenue A
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Under sub-section (2) if the Collec
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1 [(4) Without prejudice to the pro
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1 [59A. No prosecution und~ section
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