Registration completes gift of immovable property for tax purposes; execution alone does not transfer title.

A gift of immovable property is complete for gift-tax purposes only when the gift deed is registered under Sections 122 and 123 of the Transfer of Property Act, 1882. Mere execution of the deed does not complete the transfer while registration remains pending. Section 47 of the Registration Act, 1908 only gives a registered document operative effect from an earlier date for limited purposes; it does not create a relation-back rule for completion of title or transfer. On that basis, the assessment to gift-tax for the relevant year was upheld because the gift became complete only on registration.

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Issues: Whether a gift of immovable property is complete for the purpose of gift-tax only upon registration of the gift deed, or whether execution of the deed is sufficient.

Analysis: A gift of immovable property must satisfy the requirements of Sections 122 and 123 of the Transfer of Property Act, 1882, which make a registered instrument essential for completion of the transfer. The statutory scheme shows that the transaction is not complete merely on execution of the deed if registration is still pending. Section 47 of the Registration Act, 1908 does not determine when a transfer becomes complete; it only makes a registered document operative from an earlier date for limited purposes and does not create a relation-back rule for completion of title or transfer. The previous decisions relied upon confirm that registration is the decisive event for completion of such a gift.

Conclusion: The gift became complete only on registration of the deed, and the assessment to gift-tax for the year in question was rightly upheld. The question was answered in favour of the Revenue.

Ratio Decidendi: For an immovable property gift, completion of transfer and resulting tax liability arise only when the registered instrument comes into existence; Section 47 of the Registration Act, 1908 does not make the transfer complete from the date of execution.

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