Market value for assigned leasehold interest governs stamp duty, not just the deed consideration, under the amended stamp law.

An assignment of the lessee's unexpired leasehold interest is chargeable to stamp duty on the market value of the interest conveyed, not merely on the consideration stated in the deed. Under the amended stamp law and undervaluation rules, market value means the price the subject matter would fetch in the open market at execution, and it must be assessed on rational and comparable principles. The leasehold interest is not valued as absolute ownership, but the registering authority may determine deficit duty and keep registration in abeyance until payment. The appeals were allowed and registration on the basis of stated consideration was set aside.

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Issues: Whether stamp duty on the assignment of the unexpired period of leasehold interest was payable on the basis of the market value of the property as a conveyance under the amended stamp law, or only on the consideration stated in the deed.

Analysis: The transfer in question was an assignment of the lessee's whole remaining interest and not an underlease. Under the amended scheme of the Indian Stamp Act, 1899, read with the West Bengal amendment and the undervaluation rules, a transfer by assignment of leasehold interest attracts assessment on market value. The market value is the price the subject-matter would fetch in the open market on the date of execution, and where the statute does not prescribe a precise method, valuation has to be made on rational and comparable principles. The valuation of a leasehold interest cannot be equated with the value of absolute ownership, but the instrument is still chargeable on the market value of the interest transferred, and the registering authority is empowered to ascertain deficit duty and keep registration in abeyance until payment.

Conclusion: Stamp duty was rightly required to be assessed on the market value of the leasehold interest transferred by assignment, and the petitioners were liable to pay the deficit duty.

Final Conclusion: The appeals succeeded and the order directing registration on the basis of the stated consideration was set aside, with the parties required to proceed on the basis of market-value assessment of the assigned leasehold interest.

Ratio Decidendi: Where a leasehold interest is transferred by assignment, the instrument is chargeable to stamp duty on the market value of the interest conveyed, not merely on the consideration recited in the deed.

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