Section 50C applicable on sale value of depreciable asset

assessee company has sold the property and shown sale consideration at Rs.30 lakh whereas the stamp duty value of the property Rs.1,42,83,000/- and accordingly the Assessee arrived at loss of Rs.44,87,519/- on sale of the residential property. While passing the order u/s.143(3), the AO has not uttered a single word with regard to applicability of provisions of Section 50C in respect of building sold by assessee to its Managing Director. The provisions of the Section 50C are applicable in the case of transfer of land and building including depreciable capital asset. The provision of section 50C contains a special provision for determining full value of consideration and as per provisions of section 50C when the consideration received or accruing as a result of the transfer by an Assessee of capital asset being land or building or both, is less than the value adopted or assessed by an authority of the State Government for the payment of stamp duty in respect of such transfer, the value so adopted or assessed shall for the purpose of Section 48, be the full value of consideration received or accruing as a result of such transfer. In the instant case, the property has been transferred to Mrs. Alka B Birewar, the Managing director of the assessee company for Rs. 30 lakhs against the stamp duty valuation of the property of Rs.1 ,42,83,000/ -. The Hon’ble Bombay High court in the case of Bhatia Nagar Premises Co-Operative society Ltd. had an occasion to consider the scope of on 50 C and it is held by their Lordships that Section 50C is a measure provided to bridge the gap as it was found that the assessee were not correctly declaring the full value of consideration or in other words resorting to the practice of under valuation. Further, the decision of Special Bench in the case of ITO vs. United Marines Academy (supra) has made it clear that section 50C will be applicable on the sale value of depreciable asset.