CHIEF CONTROLLING AUTHORITY INSPECTOR GENERAL OF REGISTRATION AND COMMISSIONER OF STAMPS BANGALORE Vs. TEXAS INSTRUMENTS INDIA LIMITED

JUDGEMENT

(1.) THIS is a reference made under Section 54 (1) of the karnataka Stamp Act 1957 (hereinafter called the Act ).

(2.) THE essential facts leading up to this reference are as follows : the instrument styled as lease deed dated 18-10-1996 executed by M/s. Golf View homes a registered partnership firm as lessor and M/s. Texas Instruments India Limited as lessee, was presented for registration before Sub-Registrar Bangalore (South)Taluk. Said instrument is drawn up on stamp paper of Rs. 21,92,000/ -. Under the said document lessor has leased premises with 1,41,183/- sq. ft. of the built up area for a period of 10 years on monthly rent of rs. 11. 25 per square foot for first 5 years and for next five years rent at escalation of 30%. The lessor received Rs. 3,81,19,410/--equivalent to rent for 24 months as a refundable security deposit which is repayable by the lessor and will be adjusted in the rental for the last two years of lease period. The rent reserved at agreed rate for the first five years at the rate of Rupees 15,88,308/-per month would come to Rs. 9,52,98,525/--and for next five years at the rate of rs. 20,64,800/- would come to Rupees 12,38,88,. 024/- and total rent reserved would come to Rupees 21,91,86,549/- and average annual rent would be 2,19,18,655/- and stamp duty of 10% Rs. 21,91,900/- was paid. Under Article 30 (a) of Schedule to the act and stamp duty of Rs. 100/- was paid on the refundable security deposit under article 47 of the Schedule to the Act. The said document was impounded under Section 33 of the Act on the ground that it was insufficiently stamped and matter was referred to the District Registrar under Section 37 (2) for determination of the correct duty under Section 39 of the Act.

(3.) THE Deputy Commissioner of Stamps, bangalore (Urban) District, felt a doubt as to the correct amount of stamp duty to which the document is chargeable and wherefore the statement of a case was drawn up and submitted to Chief Controlling Revenue Authority under Section 53 (2) of the Act. The opinion was rendered on 18-5-1998, holding that the amount of Rs. 3,81,19,410/-deposited as a security deposit adjustable in the rental of the last 2 years of the lease period is to be treated as Advance under article 30 (c) of the Act and deficit stamp duty of Rs. 38,11,940/- is to be paid.