Registration completes a gift of immovable property for tax purposes; execution alone does not fix the effective transfer date.

A gift of immovable property is completed for gift-tax purposes only when the gift deed is registered, because the Transfer of Property Act and section 17(1)(a) of the Registration Act require registration for a valid transfer. Section 47 of the Registration Act gives a registered document retrospective operation from execution between the parties for limited purposes, but it does not complete an unregistered transfer or move the effective date back against third parties, including the Revenue. Accordingly, the property gifted was taxable in the assessment year in which registration took place.

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Issues: Whether a gift of immovable property becomes effective for gift-tax purposes on the date of execution of the deed or only on the date of its registration.

Analysis: A gift of immovable property under the Transfer of Property Act must be made by a registered instrument, and section 17(1)(a) of the Registration Act also requires registration of such an instrument. Section 47 of the Registration Act gives a registered document operation from the date of execution as between the parties for the limited purpose of priority and operative effect, but it does not dispense with registration as the point at which the transfer is completed. The earlier authorities relied on by the Court show that the gift becomes complete only when the registered instrument comes into existence, and the retrospective operation under section 47 cannot be used to treat an unregistered gift as completed on the execution date. As against the Revenue, which is a third party to the deed, the effective date is the date of registration.

Conclusion: The gift became effective on the date of registration, not on the date of execution, and the immovable property gifted was rightly included in the taxable gift for the relevant assessment year.

Ratio Decidendi: For gift-tax purposes, a gift of immovable property is complete only on registration of the gift deed, and section 47 of the Registration Act does not advance the date of completion to the date of execution against third parties including the Revenue.

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