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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eferred to <strong>in</strong> Section 47A and Rules, the same may be considered.Such guidel<strong>in</strong>es therefore, were follows by most of the stampauthorities. Such guidel<strong>in</strong>es were challenged <strong>in</strong> many States andsome of the Courts had held that such guidel<strong>in</strong>e had no force of lawand should be treated only as guidel<strong>in</strong>e. The state of Andra Pradeshhad prepared the guidel<strong>in</strong>es which is known as “basic valuationregister” <strong>in</strong> order to enable the register<strong>in</strong>g office to verify whetherthe true market value was truly reflected <strong>in</strong> the <strong>in</strong>strument for thepurpose of stamp duty.3. The mater arose before the Supreme Court from the judgement andorder dated 29 th October 1982 of the Andra Pradesh High Court. TheHigh Court found that the basic valuation register had no evidentialvalue, and that it had no statutory basis. Accord<strong>in</strong>g to the SupremeCourt Section 47A clearly shows that the exercise of powerthereunder is with reference to a broad l<strong>in</strong>e covered by the<strong>in</strong>strument brought for registration and that Section 47A conferred toexpress power to the Government to determ<strong>in</strong>e the market value ofthe lands prevail<strong>in</strong>g <strong>in</strong> a broad area, village, block, district or theregion and to ma<strong>in</strong>ta<strong>in</strong> basic valuation register for levy for stampduty for registration of an <strong>in</strong>strument etc. After consider<strong>in</strong>g variousjudgement and provisions of Section 47A as enacted by variousStates, the Supreme Court held that the basic valuation Register hasno statutory base.4. Thus accord<strong>in</strong>g to the Supreme Court the basic value register orhuidel<strong>in</strong>e or ready reckoner by whatever name called has nostatutory force and value of each immovable property comprised <strong>in</strong>the <strong>in</strong>strument has to be decided accord<strong>in</strong>g to the Rules <strong>gov</strong>ern<strong>in</strong>gtrue market value.5. The Valuation departments has to make valuation of each <strong>in</strong>dividualproperty accord<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 arelaid down <strong>in</strong> various decisions of the Supreme Court. Thesepr<strong>in</strong>ciples are adopted while determ<strong>in</strong><strong>in</strong>g the compensation payable<strong>in</strong> respect of property under the Land Acquisition Act.The price has to be determ<strong>in</strong>ed on the basis what a hypotheticalpurchaser will<strong>in</strong>g to purchase land from the open market andprepared to pay reasonable price would offer. Assumption is that thevendor is will<strong>in</strong>g to sell the land at a reasonable pr<strong>in</strong>ce. Normally,authority takes <strong>in</strong>to account genu<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 on theconsideration of proximity from time angle and from situs angle.After identify<strong>in</strong>g the <strong>in</strong>stances which provide the <strong>in</strong>dex of marketvalue, the price reflected there<strong>in</strong>, may be taken as a norm and thevalue of <strong>in</strong> question may be deduced by mak<strong>in</strong>g suitable adjustmentsfor the plus and m<strong>in</strong>us factors vis-a-vus land under consideration by