Section 50C Applicable Only on Transfer of Immovable Property Compared with Stamp Duty Value: ITAT

The ITAT clarified that Section 50C of the Income Tax Act applies only when there is a transfer of immovable property and requires comparison between actual sale consideration and the stamp duty valuation. The Tribunal ruled that this deeming provision cannot be used in transactions where no transfer occurs. The article narrates the facts, taxpayer’s contentions, and how the Tribunal limited the provision’s scope. It explains the intent behind Section 50C to curb undervaluation in property transfers but warns against misuse in non-transfer cases. The decision strengthens the principle of strict interpretation of deeming provisions and will help taxpayers in real estate transactions avoid unjustified additions.