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

More documents

Recommendations

Info

provides as to haw the instrument which is undervalued should be dealingwith. Almost all States have made provision for dealing with the instrumentwhich according to the Registering Officer is undervalued after registeringsuch instrument and not before registering the same as is the case withMaharashtra.2. Many States while providing Rules for deciding the market value providedthat if any broad guideline that may be contained in the list prepared by theState Government falls within any of the principles refereed to in section47A and Rules, the same may be considered. Such guidelines therefore,were followed by most of the stamp authorities. Such guidelines werechallenged in many States and some of the Courts had held that suchguideline had no force of law and should be treated only as guidelines. TheState of Andhra Pradesh had prepared the guidelines which is known as“basic valuation register” in order to enable the registering office to verifywhether the true market value was truly reflected in the instrument 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. According to the Supreme Court, Section 47Aclearly shows that the exercise of power there under is with reference to abroad line covered by the instrument brought for registration and thatSection 47A conferred not express power to the Government to determinethe market value of the lands prevailing in a broad area, village, block,district or the region ad to maintain basic valuation register for levy forstamp duty for registration of an instrument etc. After considering 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 according to the Supreme Court the basic value register of guideline orready reckoner by whatever name called has no statutory force and value ofeach immovable property comprised in the instrument has to be decidedaccording to the Rules governing true market value.5. The valuation department has to make valuation of each individual propertyaccording to the Rules prescribed under the Stamp Act.The principles to determine fair market value of the property are laid down invarious decisions of the Supreme Court. These Principles are adopted whiledetermining the compensation payable in respect of property under the LandAcquisition Act.The price has to be determined on the basis of what a hypothetical purchaserwilling to purchase land from the open market and prepared to pay areasonable price would offer. Assumption is that the vendor is willing to sellthe land at a reasonable price. Normally, Authority takes into accountgenuine instances. The most comparable instances out of the genuineinstances have to be identified of the consideration of proximity from timeangle and from situs angle. After identifying the instances which provide theindex of market value, the price reflected therein, may be taken as a norm
and the value of in question may be deduced by making suitable adjustmentstor the plus and minus factors vis-à-vis land under consideration by placingthe two in juxtaposision. [ Shrichand Raheja v.S.C.Prasad and Others1952(2)Bom.C.R.145]6. The Bombay High Court has given a judgement on the question wheather a Deed of Cancellation can amount to reconveyance and willattract stamp duty as on conveyance in Creast Hoter Limited v. Asstt.Superintended of Stamps(AIR 1994 Bom 228 = 32 Mah.L. J. 1261). In thatmatter the Petitioner had entered into an agreement for sale on 7 thSeptember, 1986 in respect of an unconstructed flat and open car parkingwhich was lodged for registration. On 16 th October,1988 the said agreementwas cancelled by executing a deed of cancellation on stamp paper of Rs.10/- and was lodged for registration. The registering office was of theopinion that the said document attracted the stamp duty as per provisions ofArticles 25 (b) i.e. as on conveyance and referred the matter to theSuperintendent of Stamps who agreed with the same and determined withthe same and determined the deficient stamp duty on Rs. 2,17,890 andlevied penalty of Rs. 21,000. The Bombay High Court held the explanationto Article 25 of Schedule I merely creates a legal fiction for the purpose ofthat article and for that limited purpose it provides that even agreement forsale in the circumstances specified therein shall be deemed to be aconveyance and stamp duty shall be levied thereon accordingly. Accordingto the Bombay High Court in respect of the cancellation executed by thepetitioner the said explanation was not attracted and that the conditionprecedent for applicability of the deeming provision were totally absent andthat in that case by the agreement of sale which had been cancelled by theDeed of Cancellation in question there was no conveyance even for thelimited purpose of Article 25 of Schedule I of the Bombay Stamp Act. TheCourt further held that no immovable property or interest therein wasconveyed to the Purchaser by the said agreement and hence there wasnothing to be reconveyed by the Flat Purchasers to the Owners of theBuilding by Deed of Cancellation and Article 25 had no application.Right to catch fish being profit a prendre it is benefit arising from land and isimmovable property. The writing as instrument would require stamp underArticle 35 (a) of Schedule 1A C/S. 1& 3-- 1995 1 SCC 520 – Santosh v. State of MP.(k) “impressed stamp” includes –(i) labels affixed and impressed by the proper officer .(ii) stamps embossed or engraved on stamped p ap er;1 [(iiii) impression by franking machine;(iv) impression by any such machine as the State Government may, bynotification in the Official Gazette, specify;](l) “instrument” includes every document by which any right or liability is, orpurports to be, created, transferred, limited, extended extinguished or recorded,but does not include a bill of exchange, cheque, promissory note, bill of lading,
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 and 12: Agreements entered into before 10 t
Page 13: 3. The Court was constructed severa
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
Page 63 and 64: (2) The Chief Controlling Revenue A
Page 65 and 66:
Under sub-section (2) if the Collec
Page 67 and 68:
1 [(4) Without prejudice to the pro
Page 69:
1 [59A. No prosecution und~ section
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?