RASHTROTHANA PARISHAT Vs. STATE

JUDGEMENT

(1.) In the exercise of this power under Sec. 46A of the Karnataka Stamp Act, 1957 ('the Act' for short), the 2nd respondent held the document in question dated 24-01-1974 and registered thereafter, as a simple mortgage of lease hold rights in specific property attracting stamp duty under Art. 34(b) of the Schedule to the Act and also liable to transfer duty to the Bangalore City Corporation; accordingly he ordered the payment of the deficit stamp duty of Rs. 92,280/-. This was affirmed by the 3rd respondent.

(2.) The proceedings were initiated by the issuance of a notice dated 24-07-1980 (Annexure-C), after Sec. 46A was inserted in the Act No. 15 of 1980 retrospectively. According to the petitioner, the document was an agreement relating to deposit of title deeds executed by it in favour of Corporation Bank, and is covered by Art. 6 of the Schedule to the Act.

(3.) Petitioner is a Society registered under the provisions of the Societies Registration Act, constituted for the purpose of building up the personality of citizens of India, by assisting them in physical, intellectual, moral and emotional developments and is exempt from payment of Income-tax. In furtherance of its objectives, petitioner obtained a piece of land on lease from Mythic Society under a lease deed and put up a construction thereon; the lease deed was executed in June 1973. This lease hold right was the subject of an agreement relating to deposit of title deeds; it was stamped and registered accordingly.