Section 53A is not an independent transfer provision; prospective amendment to section 2(47) could not apply retrospectively.

A final Tribunal finding that an application under section 154 was maintainable could not be reopened through reference, because the proposed question no longer arose from the impugned order. Section 53A of the Transfer of Property Act was treated as a doctrine of part performance giving defensive protection to a transferee in possession, not as an independent transfer of title. The later amendment to section 2(47) treating certain section 53A transactions as transfers was prospective, so it did not apply to the relevant assessment year. On that basis, the agreement to sell and possession arrangement were not a transfer under the unamended provision.

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Issues: (i) Whether the proposed question of law arose from the Tribunal's order so as to justify reference, particularly on the maintainability of the application under section 154 and the existence of a transfer under section 2(47) of the Income-tax Act, 1961. (ii) Whether the agreement to sell and the possession arrangement constituted a transfer by reason of section 53A of the Transfer of Property Act, 1882, including in the light of the later amendments to section 2(47) and the Board's circular.

Issue (i): Whether the proposed question of law arose from the Tribunal's order so as to justify reference, particularly on the maintainability of the application under section 154 and the existence of a transfer under section 2(47) of the Income-tax Act, 1961.

Analysis: The earlier order of the Tribunal had already held that there was a mistake apparent from the record and that the application under section 154 was maintainable, and that order had attained finality. The later order of the Tribunal proceeded on the basis that there had been no transfer at all. In that situation, the proposed question did not arise from the impugned order, and the issue sought to be reopened was no longer available for reference.

Conclusion: No referable question of law arose on this issue, and the contention was against the Revenue.

Issue (ii): Whether the agreement to sell and the possession arrangement constituted a transfer by reason of section 53A of the Transfer of Property Act, 1882, including in the light of the later amendments to section 2(47) and the Board's circular.

Analysis: Section 53A embodies the doctrine of part performance and operates as a defensive protection for the transferee in possession; it does not by itself confer title or amount to transfer in the sense urged by the Revenue. The later insertion of sub-clause (v) in section 2(47) treated certain transactions falling within section 53A as transfers, but that statutory enlargement could not be applied to the unamended provision governing the relevant assessment year. The amendments were also made operative from specified future dates, and the circular confirmed prospective application.

Conclusion: The agreement did not amount to a transfer under the unamended section 2(47), and this issue was against the Revenue.

Final Conclusion: The Court found that the reference application failed because the proposed question either no longer survived or did not arise from the order under challenge, and the Revenue was not entitled to the reference sought.

Ratio Decidendi: A transaction is not to be treated as a transfer under section 2(47) of the Income-tax Act, 1961, by independent reliance on section 53A of the Transfer of Property Act, 1882, and a question already concluded by a final Tribunal order does not survive for reference as a referable question of law.

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