The Bombay High Court quashed the orders of the Collector of Stamps and Appellate Authority. The court held that the demand for stamp duty on 925.30 sq.mtrs. of land was incorrect, as the actual increase in the leased area was only 178.27 sq.mtrs. The Court ruled that the petitioners were liable to pay stamp duty only on the excess land area that resulted from the rectification deed.

1. Lease Deed Execution (July 2009):

A lease deed was executed between Mr. & Mrs. Sheth (lessors) and the petitioner trust (lessee) for land measuring 3872.53 sq.mtrs., consisting of CTS Plot No. 53A/1-B and CTS Plot No. 53A/1-C.

2. Property Details:

At the time of execution, CTS Plot No. 53A/1-B measured 3125.50 sq.mtrs., and CTS Plot No. 53A/1-C was 3872.53 sq.mtrs. The land was reserved for a playground and a municipal primary school.

3. Stamp Duty Adjudication:

Stamp authorities determined the market value of the land at Rs. 16.99 crores and levied stamp duty of Rs. 76,45,860 on the 3872.53 sq.mtrs. property.

4. Amalgamation/Sub-division (2010):

Following a sub-division/amalgamation in 2010, the total leased area increased from 3872.53 sq.mtrs. to 4050.80 sq.mtrs., resulting in an excess of 178.27 sq.mtrs.

5. Rectification Deed (2011):

To reflect the change in land area, a rectification deed was executed in 2011. The petitioner sought an adjudication of stamp duty for the increase of 178.27 sq. meters., but the Collector determined stamp duty based on an increase of 925.30 sq.mtrs.

6. Dispute:

The petitioner challenged the stamp duty demand of Rs. 53,63,050 on the 925.30 sq.mtrs. area, arguing that the excess area was only 178.27 sq.mtrs. as mentioned in the rectification deed.

7. Collector and Appellate Orders:

Both the Collector and the Appellate Authority upheld the stamp duty demand, leading the petitioner to approach the High Court.

Arguments:

1. Petitioner’s Arguments:

• The original lease was for 3872.53 sq.mtrs., part of which came from CTS Plot No. 53A/1-B (3125.50 sq.mtrs.) and CTS Plot No. 53A/1-C (747 sq.mtrs.).
• Post amalgamation, only 178.27 sq.mtrs. of excess land was added, not 925.30 sq.mtrs.
• Stamp duty had already been paid on the original 747 sq.mtrs. of CTS Plot No. 53A/1-C, and no additional duty should be levied.

2. Respondent’s Arguments:

• The respondents argued that the Collector had appropriately assessed stamp duty based on the new property card and rectification deed, reflecting the total area of 4050.80 sq.mtrs.

Ratio Decidendi:

The Court held that:

• The petitioner’s claim that only 178.27 sq.mtrs. of excess land was added through the rectification deed was correct.
• The respondents' demand of stamp duty on 925.30 sq.mtrs. would amount to double charging, as 747 sq.mtrs. of that land was already included in the original lease and paid for.

Acts and Sections Discussed:

• Bombay Stamp Act, Section 31 (now Maharashtra Stamp Act, 1958): Adjudication of stamp duty payable on instruments.

Subjects:

#StampDuty #PropertyLaw #RectificationDeed #BombayHighCourt #LeaseAgreements #MaharashtraStampAct