Section 50C valuation and unsupported deductions sustained where assessee failed to substantiate property transfer and interest income claims.

Reassessment for escapement of income from property transfer was completed on a best-judgment basis after the assessee failed to respond to the section 142(1) notice or produce supporting material. The understatement in sale consideration was taxed under section 50C by reference to the fair market value reflected in departmental records, and the resulting long-term capital gains addition was sustained. Chapter VI-A deductions claimed against salary income were disallowed for want of evidence, and savings bank interest was added because it had not been offered to tax. The Assessing Officer's additions were upheld, and the assessee received no relief on the merits.

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Issues: Whether the additions towards long-term capital gains under section 50C, disallowance of deductions claimed under Chapter VI-A, and addition of interest income were justified.

Analysis: The reassessment was based on escapement of income arising from transfer of property, and the assessment was completed under best judgment after the assessee did not respond to the notice under section 142(1) or produce supporting material. The transfer consideration was compared with the fair market value reflected in the departmental records, and the difference was brought to tax by applying section 50C. The assessee also failed to furnish evidence for the Chapter VI-A deductions claimed in relation to salary income, and the interest credited to the savings bank account was found to have remained unoffered to tax.

Conclusion: The additions made by the Assessing Officer were upheld and the assessee obtained no relief on the merits.

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