Gift-tax definition of gift is self-contained; an unregistered immovable property transfer can still qualify as a valid gift.

For gift-tax purposes, the statutory definition of "gift" in the Gift-tax Act is self-contained and is not governed by the registration requirement for immovable property transfers under the Transfer of Property Act. A transaction may still qualify as a gift under that Act even if it is imperfect or invalid under the general law of property transfer, provided it falls within the statutory definition. On the facts, possession had been delivered and the donee had acted in a manner consistent with ownership, so the absence of a registered deed did not defeat gift-tax treatment.

---

---

Issues: Whether an immovable property gift is invalid for gift-tax purposes merely because the instrument was not registered under the Registration Act and the Transfer of Property Act.

Analysis: The Gift-tax Act was treated as a self-contained enactment with its own exhaustive definition of "gift". The Court held that the statutory concept of gift under the Gift-tax Act is wider than the concept under the Transfer of Property Act, and that the legislature had not incorporated the registration requirement applicable to gifts of immovable property under section 123 of the Transfer of Property Act. The Court further held that a transaction may still constitute a gift under the Gift-tax Act even if it is imperfect or invalid under the general law governing transfer of property, so long as it falls within the definition enacted in that Act. On the facts, the donee had been put in possession and had exercised rights consistent with ownership.

Conclusion: The absence of a registered deed did not prevent the transaction from amounting to a valid gift under the Gift-tax Act, 1958, and the reference was answered in favour of the assessee.

Ratio Decidendi: For gift-tax purposes, the statutory definition of "gift" in the Gift-tax Act is self-contained and is not controlled by the registration requirements of the Transfer of Property Act.

---