Can sale of prop at low price termed as Undisclosed income

Hi all

Captial gains on sale of property requires that sale consideration is taken as higher of municipal valuation or actual sale price of flat. Now in a scenario where say e.g. Municipal valuation is 15 lakhs and actual sale price is 10 lakhs, its very clear that sale price should be considered @ 15 lakhs.

However, here, can there be scenario where income tax officer takes a view that differential 5 lakhs is undisclosed income for seller and undisclosed source of funds for buyer?

In my view, it should not be the case, since both valuations are prescribed as per Income tax act for the purpose of computation of capital gains only.