Vayyaeti Srinivasarao v. Gaineedi Jagajyothi
Background
A 50-year tenant agreed to buy the property he rented; lower courts held the agreement had to be stamped as a full "deemed sale" because he was already in possession.
Decision Breakdown
The Supreme Court held that possession only triggers deemed-sale stamp duty if it's actually linked to the sale agreement, since this tenant's possession long predated the agreement (and the landlady later even evicted him as a tenant), it remained a plain agreement to sell, not a taxable conveyance.
Lesson Learnt
A pre-existing tenant who later agrees to buy the same property doesn't automatically owe full "sale" stamp duty just because they're already in possession.