Section 50C- AO can not tax the difference in the hands of the purchaser

Brief : Capital gains-Scope of section 50C- Extension of section 50C to purchaser-Section 50C creates a legal fiction for taxing capital gains in the hands of the seller and it cannot be extended for taxing the difference between apparent consideration and valuation done by Stamp Valuation Authorities as undisclosed investment under section 69. This fiction cannot be extended any further and, therefore, cannot be invoked by AO to tax the difference in the hands of the purchaser. Citation : ITO Vs. Harley Street Pharmaceuticals Ltd. – (2010) 35 (II) ITCL 128 (Ahd `B’-Trib) Court : I...