In Brief
A tenant sought specific performance of an agreement to sell property executed in 2003, claiming no stamp duty was due as possession was held on rental basis with ownership transfer contingent on sale deed execution. The Supreme Court held that an agreement to sell is deemed a conveyance liable for stamp duty under the Bombay Stamp Act when it contemplates transfer of possession within a stipulated timeframe, regardless of the basis of current possession. With possession already established and only the formality of a sale deed remaining, all substantial conveyance conditions are satisfied. Stamp duty is levied on the instrument itself, not the transaction. The Court dismissed the appeal and upheld the lower courts' orders impounding the document and directing recovery of deficit stamp duty and penalty.
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