Registration, not mere execution, triggers section 269C proceedings for acquisition of immovable property.

Proceedings under section 269C of the Income-tax Act, 1961 can be initiated only after a transfer of immovable property is completed by registration of the conveyance. Execution of the document alone is not enough, because section 47 of the Registration Act, 1908 gives a registered instrument retrospective effect from the date of execution but does not deem the transfer complete at execution. The distinction between retrospective operation and completion of transfer was treated as decisive, and authorities based on execution alone were rejected. On that basis, the notice was held valid and the challenge failed.

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Issues: Whether the Competent Authority could initiate proceedings under section 269C of the Income-tax Act, 1961 only upon registration of the transfer instrument, or whether execution of the document was sufficient to attract the provision.

Analysis: The provision authorises initiation of acquisition proceedings when the Competent Authority has reason to believe that the immovable property has been transferred for understated consideration with the requisite tax-evading object. The transfer of title in immovable property of the relevant kind is completed only upon registration of the conveyance. Section 47 of the Registration Act, 1908 gives a registered document retrospective operation from the date of execution, but it does not deem the sale or transfer to be complete on that earlier date. The distinction between the document's operative effect and the completion of the transfer was treated as decisive, and the earlier authorities on completed transfer by execution alone were rejected on this basis.

Conclusion: The right to initiate proceedings under section 269C accrued only on registration of the document, not on its execution; the notice was valid and the challenge failed.

Ratio Decidendi: For the purpose of section 269C of the Income-tax Act, 1961, proceedings for acquisition of immovable property can be initiated only after the transfer is completed by registration of the instrument, because retrospective operation under section 47 of the Registration Act, 1908 does not complete the sale at execution.

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