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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NotesThe section applies to eight types of deeds (i) conveyance, (ii) exchange, (iii) gift, (iv)certificate of sale, (v) partition, (vi) power of attorney with power to sell immovableproperty for consideration, (vii) deed of settlement, (viii) transfer of lease, be<strong>in</strong>g the<strong>in</strong>struments on which duty is payable on ad valorem basis on market value of theproperty.Quasi-judicial functionWhile determ<strong>in</strong><strong>in</strong>g market value of the property, the collector's function would be quasijudicialfunction and all pr<strong>in</strong>ciples of natural justice has to be observed. His order must bereasoned order.JT 1996 (6) SC 190 -Smt. Prakshwati v. Chief Controll<strong>in</strong>g Revenue AuthorityUnder UP Stamp Rule, 1942 and section 47A 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 and deters anyconstructive material from where it could be said that decision was fair and reasonable.Factum of closeness to posh locality would not cast any reflection on the price of theproperty.Guidel<strong>in</strong>es are substitute for market valueGuidel<strong>in</strong>es for determ<strong>in</strong><strong>in</strong>g market value of land are no substitute for market value.(Gaurang Naik v. State 1992 Orissa 232).Basic valuation is for collect<strong>in</strong>g stamp duty and guidel<strong>in</strong>es cannot found basis of marketvalue!94-4-S-C-C-595 Jiwaji v. Revenue Officer.Section 32A and Entry 25 of Schedule IWhether an agreement entered <strong>in</strong>to between Builder-Developer and the purchasers of theflats, executed <strong>in</strong> terms of section 4 of the Maharashtra Ownership Flats (Regulation ofthe Promotion of the Construction, Sale, Management and Transfer) Act, 1963 can besubjected to payment of stamp duty <strong>in</strong> terms of section 32 A read with Entry 25,Schedule I of the Act, was the issue raised <strong>in</strong> State 'Maharashtra v. Mahavir LalchandRathod (1993 Mh L.J. 1492) Special Bench of Bombay High court was constituted forthis purpose. Justice Kurdukar observed that, on construction of the agreement <strong>in</strong>question it must be held that although it has been described as an agreement to sell <strong>in</strong>effect and for all purposes it is a conveyance fall<strong>in</strong>g under section 2(g) of the Act <strong>in</strong> asmuch as the right, title and <strong>in</strong>terest <strong>in</strong> the writ flat stands transferred <strong>in</strong> favour of thepurchaser on payment of <strong>in</strong>stallments as provided there<strong>in</strong>. Even though the document <strong>in</strong>question is an agreement of sale only yet such agreement of sale is dutiable under the Actby virtue of Explanation 1 to Article 25 of schedule I of the Act. There is no clause <strong>in</strong> theagreement which requires the developer to execute any other deed at a later stage and thisposition militates aga<strong>in</strong>st the contention of the petitioner. Held that the agreement <strong>in</strong>question is a conveyance and whether possession is given on that date or not is not therelevant and decisive factor. Such a document therefore is liable to stamp duty underArticle 25 <strong>in</strong> Schedule I of the Act, Entry 25 <strong>in</strong> Schedule I of the Act is not ultra vires theconstitution of India. It is stamp duty of State and the State Legislature is competent tolegislate <strong>in</strong> that behalf. Explanation 1 to Article 25 is <strong>in</strong>tended to cover such agreementsof Sale.