Indo Continental Hotels And Resorts Pvt. Ltd. Vs State of U.P. (Allahabad High Court)
In the case of Indo Continental Hotels And Resorts Pvt. Ltd. vs. State of U.P., the Allahabad High Court addressed the issue of stamp duty deficiency imposed on a vacant industrial plot purchased by the petitioner. The plot, declared industrial land with no adjacent commercial activity, was initially subject to stamp duty based on its industrial status. However, authorities later argued that the plot had commercial value due to its proximity to certain establishments, prompting proceedings under Sections 33 and 47 A. Despite the land being used for industrial purposes, with plans to construct a multiplex—a recognized industrial activity by the State—the authorities imposed additional stamp duty, assuming future commercial use. The court held that stamp duty cannot be levied based on speculative future use or potential market value unless officially reclassified by the State from industrial to commercial. Since no such change had been formally declared, the deficiency was deemed improper. The court set aside the impugned orders and directed the refund of any amounts paid by the petitioner within 15 days, with an interest rate of 9% per annum on delayed refunds, to be borne by the responsible officer rather than the State exchequer.
