Stamp Duty Cannot Be Levied On Agreement To Lease Without Present Demise: Bombay High Court

The Bombay High Court held that stamp duty cannot be charged on an agreement to lease by imputing an intention to create a lease in the future.

The Court observed that an agreement which merely grants a licence to enter land for a limited purpose, pending fulfilment of conditions, does not create any present right, title or interest in immovable property.

It ruled that stamp duty under the Maharashtra Stamp Act applies only when there is a present and immediate demise of property.

Quashing the orders passed by revenue authorities, the Court set aside the demand of stamp duty, along with interest and penalty, raised against the petitioner.

[Deepak Fertilizers & Petrochemicals Corporation Ltd. v. The Chief Controlling Revenue Authority, Maharashtra State & Ors.]