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Navneet Kumar Thakkar vs Income Tax Officer on 8 March, 2007 cites

Commissioner Of Income-Tax, Kanpur vs Mother India Refrigeration Industries ... on 14 August, 1985

Similar view has been reiterated by the Hon'ble Summit Court in the case of CIT v. Mother India Refrigeration Industries (P) Ltd. . Thus, what is relevant for the attractability of Section 50C, is that the property which is under transfer from the assessee to another person should have been assessed at a higher value for stamp valuation purpose than that received or accruing to the assessee. The value adopted or assessed by the stamp valuation authorities has to be of the very same property, which is the subject-matter of transfer. The language of this section provides in unambiguous terms that the value adopted or assessed by the stamp valuation authority has to be substituted with the sale consideration of the "such property". But for Section 50C, there is absolutely no warrant for replacing the value adopted by the stamp valuation authority with the actual sale consideration for the purposes of computing capital gain. Thus it is clear that the property in respect of which valuation is made for purposes of stamp duty must be the very same property, which is the subject-matter of transfer for calculating capital gain by invoking the provisions of this section. It is wholly irrelevant to consider the assessed value of another property for stamp duty purposes as full value of consideration by making reference to the Valuation Officer under Section 55A. Unless the property transferred has been registered by sale deed and for that purpose the value has been assessed and stamp duty has been paid by the parties, Section 50C cannot come into operation. In such a situation, the position existing prior to Section 50C would apply and the onus would be upon the Revenue to establish that sale consideration declared by the assessee was understated with some clinching evidence.
Supreme Court of India Cites 17 - Cited by 186 - V D Tulzapurkar - Full Document

The Commissioner Of Income-Tax,Bombay ... vs Amarchand N. Shroff, By His Heirsand ... on 10 October, 1962

7. A deeming provision has been enshrined in Section 50C by virtue of which a legal fiction has been created for assuming the value adopted or assessed by any authority of State Government as the full value of sale consideration received in respect of such transfer. A legal fiction has been created only in respect of the cases where the consideration received by the assessee is less than the value adopted or assessed by the stamp valuation authority of the State Government for the purpose of payment of stamp duty "in respect of such transfer". It is a trite law that the legal fiction cannot be extended beyond the purpose for which it is enacted. Section 50C embodies the legal fiction by which the value assessed by the stamp duty authorities is considered as the full value of consideration for the property transferred. It does not go beyond the cases in which the subject transferred property has not become the subject-matter of registration and the question of valuation for stamp duty purposes has not arisen. By no stretch of imagination, the legal fiction confined to restricted operation can be widened to include within its sweep all the cases where "such property" has not been valued by the State authorities for stamp duty purposes. The Hon'ble Supreme Court in the case of CIT v. Amarchand N. Shroff has held that "legal fiction are only for a definite purpose and they are limited to the purpose for which they are created and should not be extended beyond the legitimate field".
Supreme Court of India Cites 11 - Cited by 157 - J L Kapur - Full Document
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