Hello,
I would like to get some opinion regarding the applicability of Stamp Duty on a Sale Deed to be executed in Dehra Dun Uttarakhand. Case history is being briefed herebelow:-
X had entered into an oral agreement with Y for a piece of land on 16/05/2006 and gave a bank draft of X Amount in lieu of it as full & final amount as per the prevailing Circle Rate in 2006 but Y had to go & come back from US for some urgent work and get the Sale Deed executed in favour of X. However, after returning from US, Y played fraud and executed the Sale Deed of major part of piece of land in favour of Z, instead of X and did not even return the amount back to X. Thereupon, X instituted a criminal & civil case and in 2016 the Criminal Court held that X & Y had entered into an oral agreement dt. 16/05/20006 for the said piece of land and Y got full & final amount by bank draft from X in lieu of the sale of land but Y cheated X and fraudulently did Sale Deed of part of piece of land in favour of Z and therefore Y was convicted by Criminal Court. Now Compromise is to be filed between X, Y & Z before the Civil Court and the Sale Deeds of minor part of piece of land still in name of Y and of major part of piece of land transferred by Y to Z, both have to be done in favour of X in lieu of the above Oral Agreement and Receipt of Total Sale Consideration Amount in lieu of the above complete land.
Problem arising is Circle Rate of the said piece of land has been revised almost 10 times by now in 2016 what it used to be back in 2006 and the Registration Department is asking us to pay Stamp Duty as per previaling Circle Rate in 2016. Since the Oral Agreement was done in 2006 and Total Sale Consideration has been also paid by bank draft in 2006 only at the time of Oral Agreement, so no amount is being paid now and the Sale Deed has to be done in compliance of the above Oral Agreement dated 16/05/2006 which has been accepted by the Criminal Court and Compromise is to be filed in Civil Court.
Income Tax Act Section 50C & 56 have a Provision for this, which is being replicated verbatim below:
"(vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,—
(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;
(b) any immovable property,—
(i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;
(ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration:
Provided that where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause:
Provided further that the said proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property;"
Therefore Income Tax Act says that the Stamp Duty Value will be assessed as per the Amount of Consideration as per the Agreement and not as per the Circle Rate prevailing on Date of Execution of Sale Deed.
My query here is as follows:-
1) Is there a provision in the Stamp Act that allows adjudication of Circle Rate to be assessed on the prevailing Circle Rate as on Date of Agreement in light of the judgment of Criminal Court & Compromise to be filed in Civil Court thereby accepting the Oral Agreement dt. 16/05/2006 between X & Y?
2) Is there a similar provision as per Income Tax Act Section 50C & 56 available in the Stamp Act?
3) When Income Tax Department is ready to consider the Sale Consideration Amount and Stamp Duty prevailing on the Date of Agreement and not the Date of Execution of Sale Deed why cant the District Registrar Office also consider the same, in light of provisions laid by the Income Tax Department ?
I request my learned friends to share their views on the above and guide me the further course of action to be able to achieve the above desired result.
Thanks & Regards.
