(1.) Instant writ petition under Art. 226 of the Constitution of India has been preferred being aggrieved with the impugned order/circular dated 6.8.2003, issued by the District Magistrate, Lucknow in pursuance to the power conferred by Section 4, read with Section 5 of Indian Stamp Act, 1899, broadly on the ground that it has been issued arbitrarily without following due process of law.
(2.) The petitioner has executed a sale-deed on 17.3.2004 to the extent of his share in favour of Tanisha Builders for a consideration of approximately Rs.20 lacs. M/s. Tanisha Builders moved an application under Section 143 of the U.P. Z.A.L.R. Act for change of land use which was allowed by the Sub Divisional Magistrate, Sadar, Lucknow vide order dated 19.2.2007 and later on it was sold to M/s. Omax Limited for a consideration of Rs.328 per sq. metre. At the time of execution of the sale-deed, stamp duty was paid in accordance with circle rate.
(3.) By circular dated 1.4.2002, circle rate with regard to area in question was fixed at the rate of Rs.8 lacs per acre or 197.63 per square metre. By another circular dated 6.8.2003, the circle rate was enhanced to Rs.46.57 lacs per acre or 1150 per square metre. By another circular dated 16.6.2014, the circle rate of the agricultural land was reduced to Rs.20 lacs per acre or Rs.191 per square metre. The petitioner received a notice dated 27.5.2009 from the Income Tax Department for fresh income assessment under Section 50(c)(1) of the Income Tax Act. On 4.12.2009, an order was passed under the aforesaid provisions of the Income Tax Act and the value adopted for the purpose of stamp duty is deemed to be full value of sale consideration received or accrued as a result of capital assets, i.e. the plot in question of the agricultural land. The order further provides that the duty assessment shall be done on the basis of the duty payable in pursuance to the circular issued under Stamp Act. Accordingly, the income tax imposed amount of Rs.96,38,778/- as capital gain which accrued on a sale consideration of merely 20 lacs of the said transaction and the capital gain was calculated to be of Rs.31,38, 389/-. After receipt of the notice and assessment order under Section 50(c)(1) of the Income Tax Act, the petitioner came to know that while issuing the circular with regard to circle rate dated 6.8.2003, the respondent No.2 has not applied mind to the statutory mandate and acted in an arbitrary manner. The steep increase of the minimum value within fifteen months from the date of earlier circular in circle rate of the District Magistrate is alleged to be done by arbitrary exercise of power without taking into account the statutory mandate contained in Rule 4(a) of U.P. Stamp (Valuation of Property) Rules, 1997.
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