Capital gains timing follows allotment and possession, so a later registered deed can still support long-term treatment and section 54F relief.

For capital gains purposes, where a plot was allotted and possession given in 1979 but the sale deed was registered later, the effective transfer was treated as relating back to the date of allotment and possession. The statutory scheme under section 47 of the Indian Registration Act, 1877 and section 2(47)(v) of the Income-tax Act, 1961 supported retrospective operation where possession was given in part performance, so the transfer was not confined to the date of registration. On that basis, the gain was characterised as long-term capital gain and the assessee was held entitled to section 54F relief.

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Issues: Whether the transfer of the plot was a long-term capital gain or a short-term capital gain, and whether the assessee was entitled to the benefit of section 54F.

Analysis: The plot was allotted to the assessee in 1979 and possession was given on that date, while the sale deed was registered later. Section 47 of the Indian Registration Act, 1877 gives a registered document operation from the time it would have commenced to operate if registration had not been required, and the amended definition of transfer in section 2(47)(v) of the Income-tax Act, 1961 also covered transactions where possession of immovable property is allowed in part performance. On this basis, the effective transfer was treated as relating back to the date of allotment and possession, not merely the date of registration. The authorities relied on by the Revenue on passing of title through a registered deed did not displace the effect of section 47 and the amended capital gains provision.

Conclusion: The gain was long-term capital gain, and the assessee was entitled to the benefit of section 54F.

Ratio Decidendi: For capital gains purposes, where possession and allotment precede registration and the statutory scheme gives the registered document retrospective operation, the transfer is treated as effective from the earlier date, supporting long-term capital gain treatment.

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