Stamp Duty Exemption For IT Units Under Maharashtra Policy Applies To Expansions Too: Bombay High Court

The Bombay High Court has quashed a demand for additional stamp duty raised against an IT company. The court held that the expansion of an existing IT and IT-enabled services unit in a private IT park located within a Special Economic Zone is eligible for stamp duty exemption under Maharashtra's IT and ITES Policy, 2015.

A Division Bench of Justice Bharati Dangre and Justice R.N. Laddha allowed a writ petition filed by Nitor Infotech Pvt Ltd, setting aside an order demanding Rs 25.75 lakh as deficit stamp duty on a registered lease deed.

Nitor Infotech, an IT and IT-enabled services company, moved and expanded its operations from its Shivajinagar office in Pune to Embassy Tech Zone in Hinjewadi Phase II, a private IT park within a notified SEZ.

As per Maharashtra's IT and ITES Policy, 2015, such establishments are eligible for stamp duty exemption as an incentive to boost investment and jobs in the IT sector.

The benefit applies not only to new units but also to the expansion of existing units in public or private IT parks, including those located in SEZs.

Referring to this framework, the court noted that “the stamp duty exemption is allowed to the new IT and ITES units as well as the expansion of the existing unit in public or private IT parks as well as private IT parks in SEZ.”

Based on approvals granted by the Development Commissioner, SEEPZ, and a certificate issued by the Directorate of Industries, the lease deed executed by the company was registered with stamp duty exemption. The Directorate of Industries had granted 100 percent exemption, though the company stated that it had availed only 75 percent of the benefit.

Subsequently, the Accountant General raised an audit objection, prompting the State to issue a show cause notice under Section 53A of the Maharashtra Stamp Act, alleging that the exemption had been wrongly granted.

The authorities proceeded on the basis that the petitioner's unit was merely an expansion and not a new establishment and further held that it did not qualify as a unit situated in a private SEZ.

The High Court rejected both grounds, observing that “the twofold objections raised in the impugned order are completely unsustainable and de-horse the policy framed by the State Government.”

The bench found that the authorities had adopted an unduly narrow interpretation of a beneficial fiscal policy, stating that “the approach adopted by the respondents is too technical, particularly when it failed to consider the canvass of the policy and the beneficial provision contained therein.”

The court further held that once the competent authorities had granted exemption in accordance with the policy, the benefit could not be withdrawn merely on the basis of an audit objection.

Holding that no additional stamp duty could be levied when the transaction satisfied the conditions of the IT and ITES Policy, 2015, the bench concluded that “the levy of an additional amount of Rs. 25,75,371 cannot be sustained.”

Accordingly, the High Court quashed the impugned demand and permitted the petitioner to withdraw the amount deposited with the Court, along with accrued interest.

Case Title: Nitor Infotech Pvt Ltd v. The State of Maharashtra & Anr.

Case Number: WRIT PETITION NO. 4234 OF 2021

Citation: 2026 LLBiz HC(BOM) 22

Appearance for the Petitioner: Advocates Vidhi Punmiya, Sanket Bora, Aashit Kankariya, Shantanu Adkar and Amiya Das

Appearance for the Respondents: N.C. Walimbe (Additional G.P.) and A.R. Deolekar, AGP