Deficiency in the stamp duty - Tax evasion - A demand notice claiming an amount of Rs. 38,30,500/- plus 10% recovery charges was issued against the respondents - Writ petition filed - The High Court quashing the impugned order and the demand notice - Hence, the appeal - Penalty in respect of the sale deed executed in favour of the respondents - To consider - Though the Collector, Lucknow made a surprise site inspection, there is no record to show that all the details such as measurement, extent, boundaries were noted in the presence of the respondents who purchased the property - More so, at the time of execution of the sale deed, the house in question was used for residential purpose the - Supreme Court held that merely because the property is being used for commercial purpose at the later point of time may not be a relevant criterion for assessing the value for the purpose of stamp duty - The nature of user is relatable to the date of purchase and it is relevant for the purpose of calculation of stamp duty - No interference with the impugned order of the High Court - Appeal dismissed - No costs.

Topic(s)-Deficiency in the stamp duty , Tax evasion

Important Decision(s)-At the time sale deed property used for residential - Later used Commercial - Penalty under Stamp Act for commercial purpose - Not Proper.