Gift-tax on immovable property turns on registration date, not execution date, because legal transfer is complete only on registration.

For gift-tax purposes, a gift of immovable property is completed only when the gift deed is validly registered, because transfer under the Transfer of Property Act requires a registered instrument and a valid transfer in law. The date of execution or alleged delivery of possession does not fix the tax point. Registration is complete only when the statutory registration process is finished, and section 47 does not advance the completion date for tax purposes. The relevant assessment year is therefore determined by the date of registration.

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Issues: Whether a gift of immovable property for gift-tax purposes is effected on the date of execution of the deed or on the date of registration of the instrument.

Analysis: A gift of immovable property under the Transfer of Property Act requires a registered instrument, signed and attested as prescribed. The Gift-tax Act defines gift and transfer in terms that still require a valid transfer in the eye of law. Registration is complete only when the statutory process of copying the document into the registration records is finished, and the doctrine of relation back under section 47 does not advance completion of the transfer for tax purposes. Since a valid gift of immovable property is not complete until registration, the relevant date for levy is the date of registration, not the date of execution or alleged delivery of possession.

Conclusion: The gift became effective only on registration, so the assessment year had to be determined with reference to that date. The answer was therefore against the assessee and in favour of the Revenue.

Ratio Decidendi: For gift-tax on immovable property, the taxable transfer arises only upon valid registration of the gift deed, and the relation-back effect of registration does not shift the tax point to the date of execution.

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