SITA RAM Vs. BOARD OF REVENUE

JUDGEMENT

(1.) THE question involved in this Reference made by the Board of Revenue under Section 57 of the Stamp Act is as under : "Whether the document under reference (Annexure-I) comes within the definition of a 'settlement' as given in Section 2(24) clause (c) of the Stamp Act and is chargeable with duty under Article 58-A Schedule I-B thereof or is a declaration of trust chargeable under Article 64-A Schedule I-B of the said Act ?"

(2.) THE facts leading to the above reference lie within a narrow compass. Sita Ram and Smt. Laxmi Devi were the owners of a house situate in Mohalla Sahabganj Padreuna, District Deoria. On 12-3-1962, the house was transferred to Goswami Tulsidas Vidyalaya, Padrauna. THE donee failed to observe the conditions. Consequently, Sita Ram and Smt. Laxmi Devi, who were the donors, took over possession of the said house. On 31-5-1967, they executed the document under reference. THE recitals in the aforesaid document show that as the donee of the previous gift had failed to observe the conditions, the gift deed was revoked. After revoking the gift of 1962, they created a trust and entrusted the management of the said building in the said body in perpetuity. THE document further showed that possession over the building had been given to the trustees and it was stated that the trust was irrevocable.

(3.) WHILE the executants' contention was that the deed was a declaration of Trust and, as such, chargeable only to a comparatively small duty and not maximum fixed under Article 64 of Schedule I-B of the Stamp Act, the Revenue's contention was that the deed was chargeable with stamp duty as an instrument of settlement under Article 58 of the said Schedule, the duty being the same as chargeable on a Bond.