THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in
THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in
THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in
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3. The Court was constructed several clauses of the said agreement. Whileconstruct<strong>in</strong>g the same the Court has observed that the agreement was entered <strong>in</strong>toonly on 8 th October, 1987 and possession was to be handed over by 30 thNovember, 1987, a very short time.4. The Court <strong>in</strong> para 19 of the judgement has observed that after consider<strong>in</strong>gthe submission <strong>in</strong> the op<strong>in</strong>ion of the court on construction of the agreement <strong>in</strong>question it must be held that although it has been described as an agreement tosell <strong>in</strong> effect and for all purposes it is conveyance fall<strong>in</strong>g under section 2(g) of theAct <strong>in</strong>asmuch as the right title and <strong>in</strong>terest <strong>in</strong> the flat stands transferred <strong>in</strong> favourof the Purchaser on payment of <strong>in</strong>stallment provided there<strong>in</strong>.5. the court has further observed that on careful scrut<strong>in</strong>y of the document <strong>in</strong>question it is difficult to hold that it is a mere agreement of sale and does notcreate and right title and <strong>in</strong>terest <strong>in</strong> the petitioner. The Court further held thattherefore, the said agreement <strong>in</strong> 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 25<strong>in</strong> Schedule I of the Act. Thus accord<strong>in</strong>g to the court the agreement it self is aconveyance and not a deemed conveyance. It may be po<strong>in</strong>ted out the court has notspecified what right title and <strong>in</strong>terest by the said agreement is created <strong>in</strong> favour ofthe petitioner.Market ValueBy Amend<strong>in</strong>g Act 16 to 1979 this concept was first time <strong>in</strong>troduced <strong>in</strong> theAct. Prior to this amendment, the stamp duty was chargeable on the amount setforth <strong>in</strong> the <strong>in</strong>strument. Thus, the basis for determ<strong>in</strong><strong>in</strong>g value of the property forcharg<strong>in</strong>g stamp duty was shifted from consideration set forth <strong>in</strong> the <strong>in</strong>strument tothe marker value.However, there is no def<strong>in</strong>ition 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 be<strong>in</strong>gused as a weapon to get revenue to the Government.JT 1996(6) SC 190—Smt. Prakshwati V. Chief Controll<strong>in</strong>g 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 va<strong>in</strong>, 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/guidel<strong>in</strong>e 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