1979 (5) TMI 39

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..... case the Tribunal was legally correct in holding that the gift was not taxable in the asst. yr. 1968-69? 3. Whether on the facts and in the circumstances of the case the Tribunal was legally correct in annulling the assessment?" The facts are as follows: The assessee had gifted agricultural land measuring 3 Bigha, 1 Biswa and 19 Biswasi in village Adlabad, Tehsil Bagpat, Distt.Meerut. The necessary gift deed was executed on31st March, 1967and was duly attested by two witnesses. The deed was, however, registered with the Sub-Registrar on14th April, 1967. The relevant year of the account of the assessee commenced on1st April, 1967and ended on31st March, 1968. The question was whether the gift took place before the year under appeal. The a .....

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..... cancelling or annulling the same, as the gift was completed on30th March, 1967prior to the commencement of the year of account under appeal. 4. After hearing the parties and considering the facts and circumstances of the case, the Tribunal found as a fact that there was no dispute that the gift in this case was a completed gift when the gift deed was executed on30th March, 1967. The Tribunal pointed out that s. 47 of the Indian Registration Act, 1877 makes it clear that a registered document shall operate from the date of registration. The Tribunal relied on the decision of the Allahabad High Court in Union Bank Ltd. vs. Mst. Ram Ratti & Others(3) in which the High Court had held that a completed gift takes effect from the date of the exe .....

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..... ly to all cases of transfer which were completed on or before or after15th Nov., 1972by registration of the instrument. Therefore, the key provision of the Act in this respect is the definition of the "instrument of transfer" in s. 269A(f) meaning the instrument of transfer registered under the Registration Act, 1908. This provision is nowhere to be found in the Gift Tax Act and therefore, the said decision is inapplicable to the facts of this case. 6. In Mulla's Indian Registration Act, 8th (1973) Edn. at pages 187 & 188, it is stated that the mere fact of the execution of a sale deed does not make it operative unless it is registered; but by reason of s. 47 of the Act once the registration has been effected the sale deed becomes operativ .....

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