When I am mentally noting the bodily experiences ( for example lifting moving placing of the foot or rising and falling of the abdomen or pain, heat etc,), along with the awareness of the experience there is a seeing of the experience. During walking meditation, all the movements of feet are visualized automatically in my mind as if I was seeing my feet with eyes open. I know this should also be treated as an experience only by noting seeing....seeing....  but the problem is since both the phenomena (mental image of the foot lifting and sensations of the foot lifting ) arise simultaneously, I can assign the label either as lifting or as seeing. So there is a constant dilemma because of which I am not able to concentrate.

I am not able to work around the thing.

Any views on this?

PS- I am a beginner to mahasi style noting.

Are you sure? Going back to basic physics, which must be happening first?

I too practice mahasi noting by noting aloud and I get that same experience all the time. I note/ that which I see with eyes as "seeing" and that which is not seen with the eye as "imagining". But yes you can certainly call both "seeing" as both are really happening in the mind anyway. It matters little if you can only label one of them and simply be aware of the other. Its about Noticing and paying attention and the labeling is there to keep the mind away from getting lost in hindrances. 

Also try to note/label that Mind State you called "dilemma" and the "feelig tone" behind it which might be "unpleasant". This is very important.

This is what you're supposed to see - congrats!

In actuality, if you're paying close attention at a faster rate, the sensations don't occur simultaneously. See if you can catch that sequence. It's important. 

Chris gives good advice above, and it sounds like good practice is happening. When I was at this stage I was constantly noticing how my experience seemed to consist of a rapid stream of images in the brow area and physical sensations in different parts of the body. Usually these images were correlated with the parts of the body I was feeling directly. 

Also, if you are still doing verbal/mental labeling (seeing... seeing... feeling...) and this stream of sensations and images is getting too fast to keep up with, it's OK to drop the verbal/mental labeling and just be aware of everything arising sequentially. Like Papa Che said above, "It's about noticing and paying attention and the labeling is there to keep the mind from getting lost in hindrances."