Capital gain issue

Section 50 C, if the value recieved is less than the SDV, then the SDV shall be deemed to be the full value of consideration.

Hence A.O may invoke Section 50 C to tax the differcnce amount.

But as per Section 50 C(2)

(2) Without prejudice to the provisions of sub-section (1), where—

 (a) the assessee claims before  Assessing Officer that the SDV exceeds the fair market value of the property as on the date of transfer;

 (b) SDV has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court,

the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer.

Thanks for the Reply Ashish,

I am aware of Section 50C provision, but in my case i have not recd excess amt (i.e SDV-Sale consideration) hence how can be liable to pay Income Tax ? Sec 50 operates to curb Tax Avoidance due to deliberalty Undervaluation of Immovable Property, but here there is no tax evasion. expect your valuable suggestion on the same.

Your question 1 state : SDV is 7 crore and forced to sell at 3 crore.

There is nothing, in section 50 C which states deliberately undervalue of property.

Section 50 C beocme applicable, when assest is sold less that its SDV value,.

There is provisions for genuine sellers, that if property does not fetch its SDV value then he may take his case to A.O to value the property.

Explantion given by Ashish is absolutely correct but if you have justifiable reasons of your dispute and that you can explain it to Assessing Officer then A.O. may consider your case but if not then the above provisions will definately be applied.