Allowing the appeal the Tribunal held that the effect of failure to register the gift instrument, would be that the transfer of the flat would not be recognized in the eyes of law, if there arose a dispute between the donor and the donee regarding the validity of the gift. In such a case no transfer of flat takes place, and the assessee’s capital account would get reduced by the cost of the flat gifted and it would get reflected in the capital account of the donor. In such an event, there would be no prejudice caused to the Revenue, on account of failure by the Assessing Officer to appreciate the legal effect of non-registration of the gift instrument. The revision was without jurisdiction and not sustainable. (AY. 2015-16)