Period of holding for immovable property runs from execution date where registration later relates back under the Registration Act.

For determining the period of holding of immovable property, the effective date of transfer is the date of execution of the registered sale deed, because section 47 of the Registration Act makes a registered document operate from the date of execution. Where registration is delayed for reasons not attributable to the assessee, the later registration does not postpone the legal effect of transfer. Applying that principle, the Tribunal treated the assessee's acquisition as relating back to the earlier execution date and accepted the transfer as having commenced then, supporting long-term capital gain treatment.

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Issues: Whether, for determining the period of holding of immovable property, the effective date of transfer is the date of execution of the sale deed or the later date of registration.

Analysis: The Tribunal relied on the settled effect of section 47 of the Registration Act, 1908, under which a registered document operates from the date of execution. On the facts, the sale deed had been executed earlier and registration was delayed for reasons not attributable to the assessee. The later registration did not postpone the legal effect of the transfer. The Tribunal accordingly followed the binding principle that registration relates back to the date of execution, and held that the assessee's acquisition must be taken from the earlier date.

Conclusion: The effective date of transfer was the date of execution of the sale deed, and the capital gain was rightly treated as long-term in favour of the assessee.

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