Introduction
The Hon'ble Supreme Court in a recent decision1
slashed the penalty imposed by the Collector of Stamps from ten
times the deficiency in stamp duty to half, i.e. five times, as
being sufficient to serve the ends of justice in that matter.
Facts
The trustees of the M/s. H.C. Dhanda Trust, created under the
Will of Late Mr. Harish Chand Dhanda, executed a Deed of Assent in
2005, absolutely vesting in favour of the legatees, certain
immovable properties forming part of the Will. The Collector of
Stamps, Indore issued a notice to the trustees stating that proper
stamp duty has not been paid on the Deed of Assent, pursuant to
which the trustees appeared before the Collector and filed their
objections. In 2008, the Collector passed an order holding the Deed
of Assent as a gift deed and based on the stamp duty payable on a
gift deed under the Indian Stamp Act, 1899
("Act"), found deficit duty to the
extent of Rs. 1,28,09,700/- and also imposed 10 times
