In Brief
The Supreme Court addressed determination of market value for stamp duty on a property sale by tenants who held the property on rent. The court held that stamp duty is calculated on the property's market value on the date of execution of the sale deed, not on the agreed consideration or any prior market value. A property occupied by tenants fetches less than comparable free property, warranting appropriate deductions. The court remanded for fresh adjudication allowing evidence on valuation, confirming no penalty was due. Previously deposited Rs. 1 crore would be subject to the recalculated duty, with refunds or additional payments as determined.
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