Registered conveyance governs transfer of immovable property for capital gains; possession and rectification deed did not shift the tax year.

For capital gains on tangible immovable property, transfer occurs only when title passes through a duly executed and registered conveyance; an agreement coupled with possession under part performance does not by itself complete the transfer. Here, the 1975 agreement merely placed the developer in possession and did not convey ownership, while the sale deed executed and registered on 23-4-1980 was treated as the operative transfer. A later rectification deed that only corrected the consideration description could not postpone or shift the passing of title. On that basis, the HUF remained the transferor when the registered sale deed was executed, and the capital gain arose in assessment year 1981-82.

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Issues: Whether the transfer of land for capital gains purposes took place on the date of the agreement and handing over of possession in 1975, or only on execution and registration of the sale deed in 1980, and whether the subsequent rectification deed postponed the transfer so as to shift the capital gains charge.

Analysis: The agreement of 1975 only put the developer in possession and did not itself convey title. The later sale deed of 23-4-1980 was an independent conveyance in favour of the ultimate vendee and contained no reference to the earlier agreement. For a sale of tangible immovable property of the value involved, title passes only through a duly executed and registered instrument; delivery of possession or the doctrine of part performance does not by itself transfer ownership. The rectification deed merely corrected the description of the consideration and could not defer the passing of title. Since the transfer occurred when the sale deed was registered, the HUF remained the transferor at that time and the capital gain arose in the assessment year 1981-82.

Conclusion: The capital gains were rightly assessed in the hands of the assessee-HUF for assessment year 1981-82, and the relation-back contention based on the earlier agreement and the rectification deed was rejected.

Ratio Decidendi: For capital gains on immovable property, transfer occurs only upon a registered conveyance that passes title; possession under an agreement or a later rectification of consideration does not by itself effect or postpone the transfer.

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