Receipt in the shape of property is fixed at completion by sale deed, not earlier payment or contract dates, absent proof of prior possession.

Determination of the timing of ''receipt in the shape of property'' requires locating the point of completion of the transaction; where payment, contract and completion by deed occur at different times, receipt is fixed at execution of the sale deed unless clear prior receipt is proved and properly raised in the proceedings. Accordingly, the amount realised for income-tax purposes belongs to the accounting year containing the date of completion by deed; assertions that receipt occurred at earlier payment entry or contract date are rejected absent admissible evidence of earlier transfer of possession or equivalent receipt.

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Issues: Whether the sum of Rs. 50,000 received in the form of two house-sites was to be treated as received by the assessee on 3rd April 1929 (date of remittance entry), 5th April 1929 (date of agreement/possession as argued), or 8th May 1929 (date of execution of the sale deed) for the purposes of assessment under Section 4(2) of the Income-tax Act.

Analysis: The question turns on when the profits were actually received in the shape of property for the year of accounting running from 13th April 1929 to 12th April 1930. The facts show payment on 3rd April 1929, a contract to sell on 5th April 1929 and execution of the sale deed on 8th May 1929. The point that possession may have been delivered before the sale deed was not raised before the original taxing officer and the appellate authority rightly declined to permit fresh evidence on that matter. Where a transaction comprises payment, contract and subsequent completion by deed, receipt in the shape of property is to be located at the time of completion of the transaction by execution of the sale deed, unless a prior event establishing receipt (such as completed transfer of possession accepted by the taxing authority on evidence) is proved and was properly raised in the proceedings.

Conclusion: The sum of Rs. 50,000 was received by the assessee on 8th May 1929, and is taxable in the accounting year containing that date; the assessee's contention that receipt occurred on 3rd April 1929 (or, alternatively, on 5th April 1929) is rejected.

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