The effective date of a gift is the date of registration of the gift deed, and not the date of execution of the deed.

AJIT K. SENGUPTA, J.

( 1 ) IN this reference under Section 26 (1) of the Gift-tax Act, 1958, the following question of law has been referred to this court for the assessment year 1974-75 :"whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the value of the immovable properties gifted by the assessee by a deed executed on April 13, 1973, but registered on July 13, 1973, should be deleted from the total taxable gift of the assessee for the assessment year 1974-75 ?"

( 2 ) THE facts, shortly stated, are as follows : The assessee filed a gift-tax return on August 20, 1974, declaring the value of the total gifts at Rs. 1,69,996. The Gift-tax Officer found that the gifts made by the assessee under a deed, registered on July 13, 1973, had not been included in the gifts returned by the assessee. He, therefore, included the amount of that gift being Rs. 1,36,242 while determining the value of the gift for the year under consideration.

( 3 ) THE assessee appealed to the Commissioner of Gift-tax (Appeals) and contended that the gift deed, though registered on July 13, 1973, was executed on April 13, 1973. It was also pointed out that the assessee was maintaining the previous year as per Bengali calendar year and the gift of Rs. 1,36,242, having been made within the previous year relevant to the assessment year 1973-74, should not have been included in determining the gift for the assessment year 1974-75. The Commissioner of Gift-tax (Appeals) rejected the assessee's submission and upheld the action of the Gift-tax Officer.

( 4 ) AGAINST the said order of the Commissioner of Gift-tax (Appeals), the assessee preferred a second appeal before the Tribunal and learned counsel for the assessee reiterated the same contentions as were advanced before the Commissioner of Gift-tax (Appeals ). The Tribunal held that the date of execution was the crucial date which should be taken into consideration as the date of transfer of the property. Accordingly, the Tribunal held that the date of execution of the gift being April 13, 1973, which fell within the previous year relevant to the assessment year 1973-74 according to the Bengali calendar, such gift could not be included in the assessment for the assessment year 1974-75.

( 5 ) THE short question which calls for determination is whether the gift becomes effective from the date of registration of the document or from the date of execution of such deed.

( 6 ) THE material facts are not in dispute, Although the deed of gift was registered on July 13, 1973, it was executed on April 13, 1973. The assess-ability of gift-tax for this assessment year will depend on whether the crucial date is the date of registration of the deed or the date of execution of the deed. Under Section 122 of the Transfer of Property Act, a gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration by the donor to the donee. Section 123 of the Transfer of Property Act provides that, for the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses. The Gift-tax Act does not enact any exception to the general law as contained in Section 123 of the Transfer of Property Act. Therefore, in order to effectuate a valid gift, the requirements of Section 123 of the Transfer of Property Act must be complied with. Section 123 of the Transfer of Property Act requires a registered instrument for a valid gift. When a person gives delivery of possession in consequence of a gift of any immovable property, the title to the said property does not pass on to the donee.

( 7 ) SECTION 17 (1) (a) of the Registration Act provides that an instrument of gift of immovable property requires registration under the said Act whatever be the value of the property.

( 8 ) SECTIONS 122 and 123 of the Transfer of Property Act leave n

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