Section 50C contain special provision for adopting stamp duty value as full value of consideration in certain cases of transfer of immovable property in the hands of seller.
Sub-section (2) provide a safeguard to seller to dispute such action on satisfaction of the following two conditions:
- That stamp duty value exceeds fair market value by producing independent documentary evidence contemporaneous to the transaction before the AO/DVO;
- That the stamp duty valuation is not disputed in any forum.
In [2026] 184 taxmann.com 66 (Mumbai – Trib.)[27-02-2026] the purchaser justified the consideration claiming distress/old-condition sale by producing a valuation report.
The Commissioner (Appeals) in rejecting the same held that such a claim may hold good only when the assessee is the seller of the property and not when he is the purchaser.
Overcoming the decision of CIT (A) the Tribunal after referring to the third proviso to section 56(2)(x)(b )held that it is equally desirable for the AO to refer the valuation of the residential flat to the DVO where distress sale claim is made by the purchaser even.
Thus the purchaser too has liberty to claim Distress sale of property to him at lower than stamp duty value and explain reasons for lower valuation during assessment proceedings.
For certain in such situations he may have to face a scrutiny of his case u/s 143(3).