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Section 3 of the Gift-tax Act, 1958-Gift-Chargeability of-Whether gift of an immovable property cannot be said to be complete prior to the date of registration of gift deed-Held, yes Facts By means of a gift deed dated 31-3-1970, being a date falling within the assessment year 1970-71, the assessee gifted an immovable property. The gift deed was, however, registered only on 29-7-1970. The GTO held that the transaction of gift became complete only on the date of registration, i.e., 29-7-1970 and that the liability to pay gift-tax arose only on that date. Accordingly, he assessed the aforesaid gift to tax for the assessment year 1971-72. Though the AAC set aside the GTO's order, the Tribunal sustained the GTO's order. On reference: Held It is evident from a combined reading of sections 122 and 123 of the Transfer of Property Act, 1882 that the transaction of gift would be complete only if a registered document is executed and other conditions are fulfilled. Hence, it cannot be said that a transaction is complete and a gift in the eye of law came to be made by the donor to the donee prior to the registration of the document by which the gift was made. Further, section 47 of the Registration Act, 1908, therefore, does not specify when a sale is to be deemed to be complete; it only permits a document, when registered, to operate from a certain date which may be a date earlier than the date of registration. This provision cannot be invoked to determine the question of point of taxability of a gift. Accordingly, the impugned gift was taxable in the assessment year 1971-72. Case review Ramsaran Lall v. Domini Kuer AIR 1961 SC 1747 and Hiralal Agarwal v. Rampadarath Singh AIR 1969 SC 244 relied on. Cases referred to Hiralal Agrawal v. Rampadarath Singh AIR 1969 SC 244 and Ram Saran Lall v. Mst. Domini Kuer AIR 1961 SC 1747. Judgment Thakkar, J.-Does a gift of immovable property become complete as soon as the gift deed is executed or only upon its being registered ? When does the transaction become complete so as to be exigible to gift-tax under the provisions of the G.T. Act, 1958 (hereinafter referred to as "the Act") ? This question arises by reason of the fact that…

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