Completed sale deed and later resale agreement still constituted a taxable transfer under capital gains law.

A sale deed that recorded receipt of consideration and delivery of possession was treated as a completed transfer of a capital asset, and registration related back to the date of execution. A contemporaneous resale agreement did not undo the transfer already effected by the sale deed, because subjective intention to retain control could not override the legal effect of a valid sale. The arrangement was therefore within the statutory definition of transfer and attracted capital gains tax under section 45 of the Income-tax Act; the authorities on conditional sale, reconveyance, and collateral obligations did not alter that result.

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Issues: Whether the transaction evidenced by the sale deed dated 11 June 1981 and the contemporaneous resale agreement dated 22 June 1981 amounted to a transfer of a capital asset liable to capital gains tax under section 45 of the Income-tax Act.

Analysis: The sale deed recorded receipt of consideration and delivery of possession, and on registration the transaction related back to the date of execution. The subsequent resale agreement did not negate the transfer already effected by the sale deed. In tax law, subjective intention to retain control could not override the legal effect of a completed sale, and the arrangement did not fall within any exclusion from taxability. The cited authorities on conditional sale, reconveyance, or enforceability of collateral obligations did not displace the conclusion that the sale deed conveyed title and constituted a transfer within the statutory definition.

Conclusion: The transaction was a transfer within the meaning of section 45 of the Income-tax Act and was chargeable to capital gains tax; the reference was answered against the assessee and in favour of the Revenue.

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