Double taxation on transfer of immovable property for inadequate consideration ?

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As one of the measure to widen the tax base and curb tax avoidance practice, the Union Budget 2013-14 enlarges the ambit of existing provision to levy tax on immovable property received for ‘inadequate consideration’ by Individuals / HUFs.
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It is now proposed that where any immovable property is received for a consideration which is less than its stamp duty value by Rupees Fifty thousand, then the difference between the stamp duty value and such consideration will be taxable as income from other sources.
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It is noteworthy that apart from the above, such difference is also taxable in the hands of the Seller under Section 50C of the Act as capital gains. In this context, one may notice that there appears to be double taxation under the proposed framework.
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To Illustrate: Mr. X has sold his immovable property to Mr. Y for 50 lakhs. Stamp duty authorities assessed the value of property at 60 lakhs. Accordingly, Mr. Y would be chargeable to tax on 10 lakhs under Section 56(2)(vii)(b)(ii) of the Act. Further, Mr. X is liable to capital gains tax on 60 lakhs under Section 50C of the Act, which includes the difference of 10 lakhs on which Mr. Y is now made subject to tax.
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Curtesy : TaxGuru