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Bombay High Court has ruled that the member of a housing society undergoing redevelopment is not required to pay stamp duty On permanent accommodation allotted as part of the project.
The judgment has brought to an end the litigation pending since 2006 and is a major relief to the real estate sector.
The court has quashed and set aside earlier circulars which held that a Permanent Alternative Allotment Agreement It needs to be re-stamped when the (PAAA) is executed between the developer and the members of the society, even if the development agreement executed between the developer and the society is already sealed.
“The seal on the development agreement includes reconstruction of every unit in the Samaj Bhawan. The stamp cannot be imposed twice,” a division bench headed by Justices GS Patel and Neela Gokhale said in the order.
The court has held that the contention of the Stamp Officers to levy stamp duty on PAAA is wrong as a society is nothing but a collection of members, who cannot exist with them and the acts of the society are nothing but the will of the majority. Member.
Thus, PAAA may not be subject to levy of stamp duty in respect of an area which corresponds to the area already owned by the member and the additional area to which the member is legally entitled.
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