Stamp valuation must consider market evidence beyond circle rate; nondisclosure of relied-upon sale deeds is unfair.

In proceedings under Section 47A of the Indian Stamp Act, the Collector must determine true market value on the date of execution after hearing the parties and conducting a proper enquiry. Circle rate is only one relevant factor and cannot be treated as conclusive; comparable sale deeds, property size, location and other market factors must also be considered. If the Collector relies on sale deeds or similar material, fairness requires disclosure to the affected party so it can answer the valuation basis. A mechanical valuation based solely on circle rate, without examining comparables and relevant circumstances, is impermissible and cannot be sustained.

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Issues: Whether, in proceedings for determination of stamp duty under Section 47A of the Indian Stamp Act, 1899, the Collector could determine market value solely on the basis of circle rate and without supplying the relied-upon sale deeds or considering comparable and relevant market factors.

Analysis: Section 47A requires the Collector to determine the value of the property after giving the parties a reasonable opportunity of being heard and after holding an enquiry into the true market value on the date of execution. The circle rate is only one relevant factor and cannot be treated as conclusive evidence of market value. Comparable sale deeds of similar properties, the size and location of the property, and other market factors must be considered. Where the Collector relies on sale deeds or other documents, fairness requires that the material be disclosed to the affected party so that it can meet the basis of valuation. A mechanical adoption of circle rate, particularly without examining comparables and other relevant circumstances, is impermissible.

Conclusion: The Collector's valuation based solely on circle rate could not be sustained, and the remand for fresh determination was ; the appeal was dismissed and the assessee's challenge succeeded.

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