WAMAN MARTAND BHALERAO Vs. COMMISSIONER, CENTRAL DIVISION

JUDGEMENT

(1.) This is a reference under Section 57 of the Indian Stamp Act. It relates to a sale-deed, dated February 9, 1923, executed by the vendors for a net consideration of Rs. 10,000.

(2.) The property sold was along with another property subject to a mortgage of Rs. 13,858-6-0 inclusive of interest at the date of the sale. The property was also subject to attachment, in respect whereof Rs. 1,500 were payable. The sale-deed makes it clear that the net consideration for the sale is Rs. 10,000. The liability for the mortgage charges and for the amount payable in respect of the attachment is accepted by the vendors under the terms of the document. The stamp duty actually paid is on Rs. 10,000. The Collector demanded the duty on that amount as well as the amount of the encumbrances. At the instance of the purchaser this reference has been made; and the question submitted for our opinion is whether in this case, in which the vendee is absolved from responsibility for removal of the encumbrances on the property, stamp duty is to be charged on the encumbrances as well as the amount paid by the vendee. I am of opinion that in such a case the duty is payable only on the amount paid by the vendee and not on the encumbrances.

(3.) At the outset I may mention that the learned Government Pleader has rightly conceded that in no case can duty be demanded on the amount payable in respect of the attachment as it does not constitute a charge on the property.