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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provides as to haw the <strong>in</strong>strument which is undervalued should be deal<strong>in</strong>gwith. Almost all States have made provision for deal<strong>in</strong>g with the <strong>in</strong>strumentwhich accord<strong>in</strong>g to the Register<strong>in</strong>g Officer is undervalued after register<strong>in</strong>gsuch <strong>in</strong>strument and not before register<strong>in</strong>g the same as is the case withMaharashtra.2. Many States while provid<strong>in</strong>g Rules for decid<strong>in</strong>g the market value providedthat if any broad guidel<strong>in</strong>e that may be conta<strong>in</strong>ed <strong>in</strong> the list prepared by theState Government falls with<strong>in</strong> any of the pr<strong>in</strong>ciples refereed to <strong>in</strong> section47A and Rules, the same may be considered. Such guidel<strong>in</strong>es therefore,were followed by most of the stamp authorities. Such guidel<strong>in</strong>es werechallenged <strong>in</strong> many States and some of the Courts had held that suchguidel<strong>in</strong>e had no force of law and should be treated only as guidel<strong>in</strong>es. TheState of Andhra Pradesh had prepared the guidel<strong>in</strong>es which is known as“basic valuation register” <strong>in</strong> order to enable the register<strong>in</strong>g office to verifywhether the true market value was truly reflected <strong>in</strong> the <strong>in</strong>strument for thepurpose of stamp duty.3. The matter arose before the Supreme Court from the judgement and orderdated 29 th October, 1982 of the Andhra Pradesh High Court. The High Courtfound that the basic valuation register had no evidential value, and that ithad not statutory basis. Accord<strong>in</strong>g to the Supreme Court, Section 47Aclearly shows that the exercise of power there under is with reference to abroad l<strong>in</strong>e covered by the <strong>in</strong>strument brought for registration and thatSection 47A conferred not express power to the Government to determ<strong>in</strong>ethe market value of the lands prevail<strong>in</strong>g <strong>in</strong> a broad area, village, block,district or the region ad to ma<strong>in</strong>ta<strong>in</strong> basic valuation register for levy forstamp duty for registration of an <strong>in</strong>strument etc. After consider<strong>in</strong>g variousjudgement and provisions of Section 47A as enacted by various States, theSupreme Court held that the basic valuation Register has no statutory base.4. Thus accord<strong>in</strong>g to the Supreme Court the basic value register of guidel<strong>in</strong>e orready reckoner by whatever name called has no statutory force and value ofeach immovable property comprised <strong>in</strong> the <strong>in</strong>strument has to be decidedaccord<strong>in</strong>g to the Rules <strong>gov</strong>ern<strong>in</strong>g true market value.5. The valuation department has to make valuation of each <strong>in</strong>dividual propertyaccord<strong>in</strong>g to the Rules prescribed under the Stamp Act.The pr<strong>in</strong>ciples to determ<strong>in</strong>e fair market value of the property are laid down <strong>in</strong>various decisions of the Supreme Court. These Pr<strong>in</strong>ciples are adopted whiledeterm<strong>in</strong><strong>in</strong>g the compensation payable <strong>in</strong> respect of property under the LandAcquisition Act.The price has to be determ<strong>in</strong>ed on the basis of what a hypothetical purchaserwill<strong>in</strong>g to purchase land from the open market and prepared to pay areasonable price would offer. Assumption is that the vendor is will<strong>in</strong>g to sellthe land at a reasonable price. Normally, Authority takes <strong>in</strong>to accountgenu<strong>in</strong>e <strong>in</strong>stances. The most comparable <strong>in</strong>stances out of the genu<strong>in</strong>e<strong>in</strong>stances have to be identified of the consideration of proximity from timeangle and from situs angle. After identify<strong>in</strong>g the <strong>in</strong>stances which provide the<strong>in</strong>dex of market value, the price reflected there<strong>in</strong>, may be taken as a norm