Registration date governs completion of property exchange for gift-tax purposes, defeating deemed gift liability in the relevant year.

Exchange of immovable property was treated as complete only upon registration, because Section 47 of the Registration Act operates from registration and does not make the transfer complete on mere execution. Since the exchange deed was registered after the close of the relevant previous year, the taxable event under the Gift-tax Act arose after that year. No deemed gift could therefore be brought to tax in assessment year 1982-83, and the Revenue's challenge failed.

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Issues: Whether the exchange of immovable property became a completed transfer only on registration so as to determine whether any deemed gift arose in the relevant previous year and was chargeable to gift-tax for the assessment year 1982-83.

Analysis: Gift-tax is attracted only when a gift is made in the relevant previous year. The definition of gift under the Gift-tax Act covers a voluntary transfer without consideration and also deemed gifts under the Act. The crucial question was the date on which the transfer by exchange became complete. The reasoning adopted from the Supreme Court authorities on the scope of Section 47 of the Registration Act, 1908 shows that registration relates to the operation of the document and does not by itself treat the transfer as complete on the date of execution. On the facts, the document of exchange was registered on 21-4-1982, after the close of the previous year ending on 31-3-1982.

Conclusion: The taxable event occurred after the relevant previous year, so no deemed gift could be assessed in the assessment year 1982-83 and the Revenue's appeal failed.

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