Gift deed timing under registration law: transfer related back to execution date, keeping the gift outside the tax year.

A gift deed executed and attested before the relevant accounting year was held complete on the date of execution, even though registration occurred later. Applying section 47 of the Indian Registration Act, 1908, the Tribunal treated the registered document as operating from the date of execution, so the later registration did not defer transfer for tax purposes. On the facts, the gift fell outside the assessment year in question and was not taxable in that year.

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Issues: Whether the gift was completed on execution of the gift deed and took effect from that date, so as to fall outside the relevant assessment year, despite registration of the deed at a later date.

Analysis: The gift deed had been executed and attested before the commencement of the relevant accounting year, and the Tribunal accepted on facts that the gift was complete upon execution. Section 47 of the Indian Registration Act, 1908 was applied to hold that a registered document operates from the date of execution and not merely from the date of registration. The later registration of the deed therefore did not postpone the date of transfer for tax purposes. The contrary authorities relied upon by the Department were held inapplicable on the facts and statutory setting of the case.

Conclusion: The gift was completed on the date of execution and was not taxable in the assessment year in question; the assessee succeeded on the substantive issue.

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