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In a case before the Bombay High Court, the court held that stamp duty cannot be charged retrospectively on the resale of old flats , giving relief to prospective buyers and sellers.
The High Court stated that Stamp duty is attracted by the instrument that is the sale deed and is not attracted by the transaction. The stamp duty authorities cannot levy taxes on historically concluded transactions, held the Court.
This is one of the landmark judgements of the Court applicable in those cases where there is no proper registration or stamped properly . The court stressed that the authorities cannot front load the current taxing regime for transactions that have already been concluded.
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