ALAPATI VENKATARAMIAH vs COMMISSIONER OF INCOME TAX HYDERABAD

The Supreme Court held that under Section 12B of the Indian Income-tax Act, 1922, title to assets must pass through effective conveyance for capital gains to be assessed. The Court found that no sale or transfer occurred before 1st April 1948, as the conveyance was executed and registered only in March 1949. It clarified that while possession was given, it did not equate to a legal transfer of property, thus ruling that only the furniture was transferred on 17th March 1948, and capital gains from it accrued on that date. The appeal was dismissed, affirming the High Court's decision regarding the timing of the transfer.