Development Agreement & Levy of Stamp Duty
In 1987, the housing society executed two agreements in favour of the petitioner developer in respect of development of two pieces of land.
On 7.2.1990, Article 5(g-a) of the Bombay Stamp Act was introduced.
On 25.9.2008, the agreements with the photo copies and the police complaint of loss of original, were presented for adjudication.
In 2009, the respondent no.1 Collector of Stamps, the stamp duty was demanded and therefore, by the order dated 30.10.2009, the documents were adjudicated. The appeal was dismissed.
In that view of the matter, there is no merit in the submission of the Petitioner that documents are construction contracts. The submission that since Petitioner-Developer is ‘allowed to develop and sell’ 40% tenements is ‘only permissive’ showing ‘agency’ cannot be accepted. Overall reading of the clauses of the document, as discussed above, establishes complete authority to construct and sell 40% of the construction, which cannot be called as mere agency agreement.
