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TMI Blog1975 (7) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... all formalities, the Sub-Registrar directed the vendors to produce the tax clearance certificate prescribed by section 230 of the Income-tax Act in order to complete the registration. The vendors obtained the certificate on November 16, 1972, and the document was registered on the same day. On May 18, 1972, the competent authority under Chapter XX-A of the Income-tax Act issued a notice to the petitioner informing him that he proposed to acquire the property under section 269D as he had reason to believe that the property had been under-valued with a view to facilitate the evasion of tax by the transferor and to facilitate the concealment of income and assets of the transferee. The competent authority invited the petitioner to state his ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 47 of the Registration Act on section 54 of the Transfer of Property Act ? In Kalyanasundaram Pillai v. Karuppa Mooppanar, the question before the Privy Council was whether an adoption of a son by a Hindu made after the execution and delivery of a deed of gift in favour of a charity, but before its registration, rendered the deed void as against the adopted son. The answer to the question depended on the effect of section 47 of the Registration Act on section 123 of the Transfer of Property Act which provided that a gift must be effected by a registered instrument. The Privy Council quoted with approval what had been said by the High Court: " The effect of those sections in my judgment is that if a title is complete except for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion does not depend upon his consent, but is the act of an officer appointed by law for the purpose, who, if the deed is executed by or on behalf of the donor and is attested by at least two witnesses, must register it if it is presented by a person having the necessary interest within the prescribed period. Neither death, nor the express revocation by the donor, is a ground for refusing registration, if the other conditions are complied with. " Thus, according to the Privy Council, the effect of section 47 of the Registration Act was that if a transfer was complete but for registration no act of the transferor between the dates of execution and registration would affect the transfer. In other words, section 47, in effect, placed an embar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from a certain date which may be earlier than the date when it was registered. The object of this section is to decide which of the two or more registered instruments in respect of the same property is to have effect. The section applies to a document only after it has been registered. It has nothing to do with the completion of the registration and, therefore, nothing to do with the completion of a sale when the instrument is one of sale. 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 date. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto force providing for the acquisition of immovable property transferred for an apparent consideration which the competent authority has reason to believe is less than the fair market value of the property, if the consideration has not been truly stated in the instrument of transfer with the object of facilitating the reduction or evasion of tax by the transferor or facilitating the concealment of income by the transferee. Thus the statutory right of the competent authority has intervened between the dates of execution and registration of the instrument of transfer. Therefore, the transfer is subject to the right of the competent authority to acquire the property under section 269C of the Income-tax Act. Sri P. Rama Rao, learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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