Stamp duty : Transfer of agricultural land by great grandfather in favour of great grandson, exempted from payment of stamp duty : Indian Stamp Act, 1899.

The petitioner was a minor and great grandson of one Shri
Bhag Singh. The petitioner is son of pre-deceased father Shri Kuldeep Singh who
expired on 31-8-1999. The petitioner was also son of a pre-deceased grandfather
Shri Baldev Singh, who died on 24-7-2002. Shri Bhag Singh, great grand-father of
the petitioner executed a transfer deed, dated 23-1-2003 registered with sub-Tehsil
in respect of agricultural land. The value of the land disclosed was Rs.30 lacs.
The petitioner being the transferee did not affix any stamp duty on the ground
that Notification dated 21-12-2001 issued u/s.9(1)(a) of
the Indian Stamp Act, 1899 granted exemption in case transfer of immovable
property is made by the great grandfather to the great grandson. The collector
issued notice to the petitioner and held that he was liable to pay stamp duty
holding that the petitioner was not covered in the category of class I – heirs.

The High Court observed that no stamp duty would be
chargeable in case of transaction or transfer by an owner of agricultural land
or rural residential property to his class I heirs as defined in the schedule
u/s.8 of the Hindu Succession Act, 1956. The schedule u/s.8 of the Succession
Act specifies heirs in class I, which includes son of a pre-deceased son of a
pre-deceased son. The aforementioned schedule reads thus :