TMI Blog1988 (11) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... comes within the definition of a settlement as given in section 2(24) of the Indian Stamp Act as chargeable with duty under article 58 of Schedule 1B thereof or is a declaration of trust chargeable under article 64 of Schedule 1B to the said Act ? " At the very outset, we may state that it appears to us that the question framed proceeds on an incorrect basis. The question shows that the Chief Controlling Revenue Authority proceeded on the basis that the instrument under the Stamp Act can either be a deed of "trust" or "settlement" only and not both. The proper question, in our opinion, is whether this particular instrument to which reference relates is a settlement or not, even though it may, on the face of it, be a deed of trust. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch), wherein it was held that a transaction may amount to a "disposition of property", though it may not be a "transfer". Reference was also made to a decision in the case of Board of Revenue v. Sridhar [1964] ALJ 301, wherein it was held by Special Bench that where the instrument clearly contained a disposition of the future rental income of the property, initially in favour of the trustee, with a direction to him to utilise that income for the benefit of the minor children of the donor, it would be a "settlement" satisfying the requirements laid down in section 2(24). The Special Bench also held that this would be so even though the instrument is by way of declaration of trust. The present reference has thereafter been made by the Chie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any non-testamentary disposition, in writing, of movable or immovable property made - . . . (c) for any religious or charitable purpose." The tenor of the document shows that it is a disposition of immovable property for religious and charitable purposes. The author expressly states that he "transfers, conveys and grants unto the trustees" the properties of which he was the absolute owner. It, therefore, squarely comes within the definition of the term "settlement" as defined in section 2(24) of the Stamp Act, 1899. Learned standing counsel contended that it is not necessary to find whether there was a declaration of trust or not. It was enough if it showed that it was a "settlement" in writing of immovable property made for any reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble will be the same as on Rs. 10,000 and rupees three for every additional one thousand rupees. In other words, the stamp duty payable on a trust deed would be at a lower basis if the amount or the value involved is more than ten thousand rupees, than on an instrument of settlement. It is obvious that a party would like to pay a lower amount of stamp duty, if permissible. The contention on behalf of Manohar Lal Dudeja is that the instrument was a deed of trust and not a deed of settlement. This has been accepted by the Chief Controlling Revenue Authority in his order dated April 18, 1980, but by a subsequent order dated January 17, 1983, the Chief Controlling Revenue Authority has not agreed with it and has made a reference. On an exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements of the term "settlement". Even if the instrument purports to be an instrument "by way of declaration of trust", it would not lose the character of being a "settlement" as defined in section 2(24) of the Stamp Act. We are, therefore, of the view that the proper answer to the question reframed by us is that the instrument in the present case is a "settlement" even though it purports to be a deed of trust. The same conclusion is reached by another process of reasoning. Even if the document is treated both as an instrument of settlement as well as an instrument containing a declaration of trust, in view of section 6 of the Stamp Act, the instrument would be liable to duty as a "settlement", the duty chargeable on a settlement being hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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