Bombay High Court: conveyance completing an old slum-redevelopment agreement is not a fresh sale for stamp duty

Allowing four connected writ petitions filed by partners of the same firm (lead matter: Atul Enterprises v. State of Maharashtra and another, Writ Petition No. 9358 of 2016), the Bombay High Court held that 2012 conveyance deeds executing earlier 1985 Development-cum-Sale Agreements over slum-declared land were not independent, fresh sale transactions attracting stamp duty at 2012 market values. Under Section 4 of the Maharashtra Stamp Act, 1958, where several instruments are employed to complete one underlying transaction, only the principal instrument bears the duty applicable to that transaction, and duty is not recalculated as if each later instrument were a new sale. The Court held that the 1985 agreements, the possession documents and powers of attorney executed at the time, and the 2012 conveyances together completed a single transaction begun in 1985, so the 2012 conveyances could not be taxed afresh at current market value.

It rejected the Revenue's reliance on alleged forged rent receipts and delayed registration, holding these went to collateral disputes between the parties and did not change the legal character of the transaction for stamp-duty purposes. Applying the principles in Kumar Housing, the Court quashed the Collector's and the Chief Controlling Revenue Authority's orders imposing deficit stamp duty and penalty under Section 32B, and allowed the petitions.