Court Upholds Stamp Duty Imposition on Subsequent Allottee's Lease Deed.
20 December 2024
Lease >> Property & Real Estate
The petitioner, M/s. S.D. Agro Farming Private Limited, challenged the orders passed by the Assistant Collector and Chief Controlling Revenue Authority regarding the stamp duty and penalty imposed on their lease deed. The petitioner had purchased a plot from a Debt Recovery Tribunal auction and executed a lease deed with the Uttar Pradesh State Industrial Development Corporation (UPSIDC) in 2017. A deficiency in stamp duty and a penalty were imposed, which the petitioner contested, claiming they were entitled to remission based on specific government notifications.
The petitioner argued that since they were a first-time purchaser through the auction, the notifications of 2015 and 2016 should apply, reducing the stamp duty. The Standing Counsel, however, contended that the petitioner was a subsequent allottee, not the original one, and thus the benefit of remission was not applicable.
The Court observed that the petitioner was indeed a subsequent allottee, as they acquired the property after the original allottee failed to pay their dues. As such, the relevant notifications did not apply, and the government order clarifying the same was correctly applied. The Court also rejected the petitioner’s argument concerning Section 4 of the Indian Stamp Act, stating that the lease executed in the petitioner’s favor was separate from the original lease. Therefore, the imposition of stamp duty and penalty was valid.
The writ petition was ultimately dismissed with no interference to the impugned orders.