TaxTMI 
TaxTMI 
Whether Section 50C, can correspondingly be applied in hands of buyer of property, and an addition can be amde u/s 69, 69A or 69B or 69C. some A.O. are trying ot do so. In my view it is wrong. Section 50C, is only for computing capital gains. So unless , the AO establishes in reality expenses or investment, addition cannot be made. An AO made addition in hands of buyer, I argued the case before the CIT(A), who deleted addition. About 15 months have lapsed, the revenue has not filed appeal before ITAT. From 01.10.06 however, in case of individual or HUF as buyer, the additin can be made u/s 56 for the difference. This provisin need to be challenged as invalid, in so far it imposes tax on an item which is not income in real sense. Even if there is lower price paid, it can be due to element of gift or a bargain benefit. Readers views will strengthen the case.
Clarification - section 50c
16 Nov 2009 
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Section 50C valuation should not cause double taxation; only excess additions under sections 69-69C merit adjustment.
Section 50C applies to computation of capital gains by deeming full value of consideration without requiring physical receipt, while additions under unexplained investment or money provisions require actual unexplained assets or funds; to avoid double taxation only the excess of unexplained income additions over the deemed valuation should be taxed, and if unexplained income additions are lower than the deemed valuation no separate addition should be made. (AI Summary)
Section 50C applies to computation of capital gains by deeming full value of consideration without requiring physical receipt, while additions under unexplained investment or money provisions require actual unexplained assets or funds; to avoid double taxation only the excess of unexplained income additions over the deemed valuation should be taxed, and if unexplained income additions are lower than the deemed valuation no separate addition should be made. (AI Summary)