Registered gift deed operates from execution date, so a completed gift was not taxable in the later assessment year.

A registered gift deed was held to operate from the date of execution, because section 47 of the Indian Registration Act, 1877 gives a registered document retrospective effect from the time it would have commenced to operate if registration had not been required. On that basis, a completed gift takes effect on execution, while registration only perfects the formal requirement. Since the gift deed was executed before the accounting period relevant to the assessment year, the transfer could not be taxed in that year. The assessability therefore turned on the execution date, not the registration date.

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Issues: Whether a completed gift under a registered gift deed operated from the date of execution or from the date of registration for deciding its assessability in the relevant assessment year.

Analysis: Section 47 of the Indian Registration Act, 1877 provides that a registered document operates from the time from which it would have commenced to operate if registration had not been required, and not from the time of registration. On that principle, a completed gift takes effect from the date of execution. Since the gift deed was executed before the accounting year relevant to the assessment year in question and registration later only perfected the formality, the transfer could not be brought to tax in that year.

Conclusion: The gift was effective from the date of execution and was not assessable in the assessment year under appeal; the issue is decided in favour of the assessee.

Ratio Decidendi: A registered instrument operates from the date of execution, not from the date of registration, and a completed gift therefore takes effect on execution for tax purposes.

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