9911796707
TMI Blog1990 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... given prior to the valuation date. The valuation date of the assessee-company for the year under appeal is 30th April, 1983. Though the possession of the plot was handed over to the assessee prior to the valuation date, the Conveyance Deed was executed on 1st December, 1983. The registration of the deed was effected on 24th of October, 1983. Since as on the valuation date the property had not been legally transferred to the assessee the assessee claimed exclusion of a sum of Rs. 23,16,509. The Assessing Officer assessed the value on the ground that in the lease deed it was mentioned that the property was transferred to the assessee-company on 13th of August, 1982. The CWT(A) confirmed the assessment on the ground that the sale deed clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation referred to the transfer of property with effect from 13th of August, 1982, the registration which was effected after the valuation period related back to that date and accordingly, the authorities below were justified in including the value of the land in the assessable wealth of the assessee. 4. We have given our careful consideration to the issue involved in this case. In the case of company, land belonging to it is includible in its assessable wealth. Now, the real question is as to whether the land belonged to the assessee-company as on the valuation date. It is not disputed that the auction of the plot took place in August 1982 and the consideration for the transfer of the plot was also paid prior to the valuation date. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered document shall operate from the time from which it would have commenced to operate, if no registration thereof had been required or made, and not from the time of its registration. 6. Mulla on Indian Registration Act, 6th edn., at page 164 has stated as under : "Section 47 of the Registration Act does not create a new title. It only affirms a title which has been created by the deed. The title is complete and the effect of registration is to make it unquestionable and absolute. But by virtue of section 47, once registration is effected, the title relates back to the date of execution." 7. In the case of Hall Anderson (P.) Ltd. v. CIT [1963] 47 ITR 790 the Hon'ble Calcutta High Court had the occasion to consider the effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Relying on the authority of the Calcutta High Court in Hall Anderson (P.) Ltd.'s case we are of the view that the land in question cannot be held to belong to the assessee-company within the meaning of section 2(m) of the Wealth-tax Act, 1957 prior to the execution of the Conveyance Deed. 11. Moreover, a different view is also available in the case of Divvi Suryanarayana Murthy's case wherein the Andhra Pradesh High Court has held as under : "A sale which is admittedly not completed until the registration of the instrument of sale is completed, cannot be said to have been completed earlier because by virtue of section 47 the instrument by which it is effected, after it has been registered, commences to operate from an earlier d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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