Capital gains: reference to valuation officer

Your case is not clear

"When a property is sold below the Stamp Duty, Section 50C and newly inserted Section 56(2)(vii) are applicable"

According to the hitherto provisions for the application of sec. 56(2)(vii)(b), the gift should be without consideration. Hence, it will not apply if the property is SOLD.

However, amendment has been made on the said section vide finance act 2013 w.e.f. 01-04-2014, including the cases where immovable property is received for a consideration which is less than stamp duty value of the property by more than 50,000/-.

In regards to your query related the applicability of valuation done by govt valuation cell in respect of Sec. 50C, it is pertinent to note the first proviso of Sec. 56(2), wherein it has been clearly mentioned that valuation done in accordance with 50C will be applicable in this section and rectification shall be done in accordance with the provisions laid down in Sec. 155(15).

Thanks for Value addition

Let me add 1 more thing that there are 2 proviso for applicability of (b) part of the provision,which relates to immovable property

Provided that where the date of the agreement fixing the
amount of consideration for the transfer of immovable
property and the date of registration are not the same, the
stamp duty value on the date of the agreement may be
taken for the purposes of this sub-clause:

(this is what I referred as Unjust, good thing they made it as proviso)

Provided further that the said proviso shall apply only in a
case where the amount of consideration referred to therein,
or a part thereof, has been paid by any mode other than
cash on or before the date of the agreement for the
transfer of such immovable property