Stamp valuation must follow the property's actual use on execution date, not speculative future residential or commercial potential.

For stamp valuation, the relevant date is the date of execution of the instrument, and the property must be assessed according to its existing nature and use on that date. Agricultural land executed and registered as such could not be valued on the basis of possible future non-agricultural or residential use, so a reference under section 47A of the Indian Stamp Act on that footing was not sustainable; the Collector's valuation, deficient duty demand, registration charges and penalty were set aside.

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Issues: Whether the market value of the property for stamp purposes had to be determined on the basis of its nature on the date of execution of the sale deed, or by treating its possible future non-agricultural use as relevant under section 47A of the Indian Stamp Act, 1899.

Analysis: The property was agricultural land when the sale deed was executed and registered. The governing principle applied was that stamp valuation must be fixed with reference to the nature and use of the property at the time of execution of the instrument. Possible future use, including a later conversion for non-agricultural purposes, was held to be irrelevant for assessing market value or for invoking the reference mechanism under section 47A. On that basis, the Collector's approach of valuing the land as residential merely because it was situated on a main road was unsustainable.

Conclusion: The valuation made on the footing of intended future residential or commercial use was incorrect, and the demand for deficient stamp duty, registration charges, and penalty could not be sustained.

Final Conclusion: The writ petition succeeded and the impugned order of the Collector (Stamp) was set aside.

Ratio Decidendi: For stamp valuation, the relevant date is the date of execution of the instrument, and the property must be assessed according to its existing nature and use on that date rather than on the basis of any prospective or intended future use.

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