LawforAll

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Showing posts with label stamp act. Show all posts
Showing posts with label stamp act. Show all posts
Sunday, January 22, 2012

Reassessment of stamp duty and penalty as per stamp act by addl. collector - found wrong=The District Magistrate, Lucknow made a spot inspection of the property in question on 21.07.2003. During inspection, the land has been found having an area of 12,099 sq. ft. with a two storey building having an area of 5,646.3 sq. ft. at ground floor and an area of 5192.3 sq. ft. at the first floor. In the inspection report, the property in question has been valued for Rs. 3,87,74,097/- and the stamp duty on the said property has been calculated by the competent authority as Rs. 38,78,000/-. However, at the time of purchase, respondents herein paid Rs. 15,53,000/- as Stamp duty, 2 =Merely because the property is being used for commercial purpose at the later point of time may not be a relevant criterion for assessing the value for the purpose of stamp duty.

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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL ...
Sunday, December 18, 2011

Registration Act, 1908: s.49, proviso - Unregistered sale deed is admissible in evidence in a suit for specific performance of the contract - Evidence Act, 1872 - Specific performance - Transfer of property Act, 1882. The question which arose for consideration in the present appeal was whether the courts below erred in holding that an unregistered sale deed was not admissible in evidence in a suit for specific performance of the contract. =Allowing the appeal, the Court HELD: The Trial Court erred in not admitting the unregistered sale deed in evidence in view of the proviso to Section 49 of the Registration Act, 1908 and the High Court ought to have corrected the said error by setting aside the order of the trial court. The main provision in Section 49 provides that any document which is required to be registered, if not registered, shall not affect any immovable property comprised therein nor such document shall be received as evidence of any transaction affecting such property. Proviso, however, would show that an unregistered document affecting immovable property and required by 1908 Act or the Transfer of Property Act, 1882 to be registered may be received as an evidence to the contract in a suit for specific performance or as evidence of any collateral transaction not required to be effected by registered instrument. By virtue of proviso, therefore, an unregistered sale deed of an immovable property of the value of Rs. 100/- and more could be admitted in evidence as evidence of a contract in a suit for specific performance of the contract. Such an unregistered sale deed can also be admitted in evidence as an evidence of any collateral transaction not required to be effected by registered document. When an unregistered sale deed is tendered in evidence, not as evidence of a completed sale, but as proof of an oral agreement of sale, the deed can be received in evidence making an endorsement that it is received only as evidence of an oral agreement of sale under the proviso to Section 49 of 1908 Act. By admission of an unregistered sale deed in evidence in a suit for specific performance as evidence of contract, none of the provisions of 1908 Act is affected; rather court acts in consonance with proviso appended to Section 49 of 1908 Act. [Paras 8, 11, 16] [519-C-D; 521-A-E; 525-B] K.B. Saha and Sons Private Limited v. Development Consultant Limited (2008) 8 SCC 564, relied on. Kalavakurti Venkata Subbaiah v. Bala Gurappagari Guruvi Reddy (1999) 7 SCC 114, referred to. Case Law Reference: (2008) 8 SCC 564 relied on Para 12 (1999) 7 SCC 114 referred to Para 13 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3192 of 2010. From the Judgment & Order dated 13.11.2008 of the High Court of Judicature at Madras in C.R.P.(PD) No. 261 of 2008. K.V. Vishwanathan, B. Rajunath, Vijay Kumar for the Appellant. T.S.R. Venkatramana, G.S. Mani, R. Satish for the Respondents.

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                                                    REPORTABLE                 IN THE SUPREME COURT OF INDIA                  CIVIL...
Monday, September 12, 2011

Stamp Act, 1899-ss. 2(14), 33, 35, 37 and 48B-Impounding of document-In a suit photocopy of a document accepted in secondary evidence-On the ground that original was lost-Original document bearing the stamp of sufficient amount, but of improper description-Order of admission of the document in secondary evidence set aside-Order for impounding the document-Correctness of-Held : Impounding of a document can be done only when the document is an instrument within meaning of s. 2(14) i.e. original document-Photocopy of a document cannot be impounded-It also cannot be accepted as secondary evidence-Madhya Pradesh Stamp Rules, 1942-r. 19-Evidence Act, 1872-s. 63. Agreement was entered into by the parties herein. Such agreement was required to be affixed a stamp of Re. 1/- under Schedule I, Item 42 of Stamp Act, 1899. The document was affixed with a notorial stamp of Rs. 4/- instead under the statutory provision. In the suit between the parties, appellant filed an application for acceptance of the photocopy of the agreement as a secondary evidence, on the ground that original thereof was stolen. Trial Court admitted the same as secondary evidence. In a Writ Petition, against the order, High Court setting aside the order of trial court, remitted the matter to decide the question as to whether a photocopy of an improperly stamped original document could be received as secondary evidence. Trial Court ordered for impounding of the document, it being insufficiently stamped. Document was sent to the Collector of Stamps for affixing appropriate stamp duty. Challenge to this order was dismissed by trial court in Review Petition. In Writ Petition, thereagainst, High Court held that such document could not be admitted in evidence, neither could it be impounded nor accepted in secondary evidence. Hence the present appeal. The question for consideration was : Whether the Court could impound the photocopy of the instrument (document) of improper description exercising its power under the provisions of the Indian Stamp Act , 1899 ?

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CASE NO.: Appeal (civil)  4696 of 2007 PETITIONER: Hariom Agrawal RESPONDENT: Prakash Chand Malviya DATE OF JUDGMENT: 08/10/2007 ...

Allowing the appeal, the Court HELD: 1.1. There is a difference between an agreement to sell and a sale. An agreement to sell is not a sale. An agreement to sell becomes a sale after both the parties signed the sale deed. What is relevant in fact is the actual valuation of the property at the time of the sale. The crucial expression used in Section 17 of the Stamp Act, 1899 is "at the time of execution". Therefore, stamp duty on a sale has to be assessed on the market value of the property at the time of execution of sale deed, and not at the time of the prior agreement to sell, nor at the time of filing of the suit. [Para 10] [115-E; 116-D, E] 1.2. The Stamp Act, 1899 is in the nature of a taxing statute, and it has to be construed strictly; and considerations of hardship or equity have no role to play in its construction. It is true that no one should suffer on account of the pendency of the matter in court but this consideration does not affect the principles of interpretation of a taxing statute. A taxing statute has to be construed as it is. The contingencies that the matter was under litigation and the value of the property by that time shot up cannot be taken into account for interpreting the provisions of a taxing statute. [Para 10 and 14] [116-E; 118-D, E] Sub Registrat, Kodad Town and Mandal v. Amaranaini China Venkat Rao and Ors., AIR (1998) Andhra Pradesh 252, disapproved. 1.3. Literal rule of interpretation applies to the taxing statute. Construing section 17 read with section 2(12) of the Stamp Act in this back-ground, there is no manner of doubt that the registering authority is under an obligation to ascertain the correct market value at that time of registration and should not go by the value mentioned in the instrument. It is true that as per Section 3, which is the charging section, the instrument is to be registered on the basis of the valuation disclosed therein. But Section 3 cannot be read in isolation and has to be read along with Section 17 of the Act. From a composite reading of Sections 3, 17 and 27, it becomes abundantly clear that the valuation given in an instrument is not conclusive. If any doubt arises in the mind of the registering authority that the instrument is under-valued then as per Section 47-A as inserted by Rajasthan Act 10 of 1982 in Rajasthan Stamp Law (Adaptation) Act, 1952, the instrument can be sent to the Collector for determination of the correct market value. Under Section 47-A read with Sections 3, 17 and 27, it becomes clear that the registering authority has to ascertain the correct valuation given in the instrument regarding market value of the property at the time of the sale. [Para 11, 12 and 13] [117-E, F, G, H; 118-A, B] A.V. Fernandez v. State of Kerala, AIR (1957) SC 657, relied on. 1.4. The view taken by the single Judge as well as by the Division Bench of the High Court cannot be sustained and the same is set aside. The Collector shall determine the valuation of the property mentioned in the instrument on the basis of its market value on the date when the document was tendered by the respondent for registration, and the respondent shall pay the stamp duty charges and surcharge, if any, as assessed by the Collector as per the provisions of the Act. [Para 16] [119-B, C] V. Madhukar, Sumit Ghosh and Aruneshwar Gupta for the Appellants. Dr. Manish Singhvi and P.V. Yogeswaran for the Respondents.

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CASE NO.: Appeal (civil)  5273 of 2007 PETITIONER: STATE OF RAJASTHAN & ORS RESPONDENT: M/S KHANDAKA JAIN JEWELLERS DATE OF J...