Court Dismisses Writ Petition, Affirms Market Value at Registration Determines Stamp Duty
In a significant judgment, the Punjab and Haryana High Court reaffirmed the principle that stamp duty on property transactions is to be assessed based on the market value prevailing at the time of registration of the sale deed, rather than at the time of execution of the agreement to sell. The decision came in the case of "Late Sh. Ved Prakash Vijh v. State of Punjab," where the petitioner challenged the assessment of stamp duty by the Commissioner, Jalandhar.
The case revolved around the dispute over whether the stamp duty should be calculated based on the market value at the time of the agreement to sell in 2001 or at the time of the sale deed registration in 2013. The petitioner argued that the stamp duty should reflect the market value at the time of the agreement, citing a prior decision by a coordinate bench. However, the court found no exceptional circumstances in the case that would necessitate a deviation from the established legal principle.
The court, presided over by Justice Kuldeep Tiwari, emphasized the consistent legal stance upheld by the Supreme Court of India in similar cases, reiterating that the prevailing market value at the time of the sale deed registration is the correct basis for stamp duty assessment. The judgment also clarified that exceptional cases, where a different assessment might be justified, require peculiar factual scenarios, which were absent in this instance.
The petitioner's contention regarding the classification of the property as a multiplex or multistoried building was also dismissed as irrelevant to the stamp duty assessment. The court observed that the classification did not impact the assessment, which was conducted based on the Collector's notified rate list.
This decision reinforces the procedural integrity in the assessment of stamp duty in Punjab, ensuring compliance with statutory provisions and averting arbitrary deviations based on subjective interpretations of agreements to sell.
Bottom Line:
Stamp duty is to be assessed on the market value prevailing at the time of registration of the sale deed and not at the time of execution of the agreement to sell.
Statutory provision(s): Constitution of India, 1950 Articles 226/227, Indian Stamp Act, 1899 Section 47A, Punjab Stamp (Dealing of Under-Valued Instruments) Rules, 1983, Rule 3-A
Late Sh. Ved Prakash Vijh v. State of Punjab, (Punjab And Haryana) : Law Finder Doc id # 2954896
