ATMA RAM SARAF Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) The Court:

(2.) However, subsequently, the Registering Authority refused to complete the registration process on the ground that stamp duty would be payable on the gift deed as per market value of the property, that is, at the rate of 6 per cent of the market value, and not half per cent of the market value which is charged for gift deeds between blood relations. The petitioner has preferred the writ petition challenging such assessment and consequential inaction of the respondent-authorities in refusing to register the gift deed unless the balance stamp duty was paid.

(3.) Learned counsel for the petitioner argues that the original lease in favour of Adhir Kumar Ganguly was granted for 999 years. It was mentioned in Clause 2(2) of the said deed that it was one of the duties of the lessee to pay all rates and taxes and other impositions in respect of the demised land and structure as assessed to be payable by the "owner" or the occupier thereof. Hence, it is argued that the transfer-in-question pertained to rights in the property, which was, for all practical purposes, akin to ownership rights in view of the long period of the lease. Thus, counsel submits, stamp duty payable on the deed of gift ought to have been assessed at half of one per centum of the market value as per Article 33(i) of Schedule IA of the Indian Stamp Act, as applicable in West Bengal, which governs gift deeds.