TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the assessment made under section 19B of the Kerala General Sales Tax Act, 1963, by rejecting the declared sale consideration and adopting a higher turnover on the ground of undervaluation and tax evasion was legally sustainable.
Analysis: Section 19B permits the assessing authority to estimate value on the basis of the prevailing market price where it is satisfied that goods have been shown at prices lower than the market price with a view to evade tax, after due enquiry and opportunity of hearing. On the facts, the declared sale arrangement was found to be part of a scheme by the manufacturer and the brand name holder to suppress the real taxable turnover and shift the first sale structure so as to avoid the tax that would otherwise arise. The Court treated the transaction as a colourable device to evade tax and held that the assessing authority was justified in invoking section 19B and in estimating the turnover accordingly.
Conclusion: The challenge to the assessment failed; the assessment under section 19B was upheld and the petition was rejected.
Final Conclusion: The impugned assessment orders were sustained because the declared pricing was found to be an undervaluation adopted in furtherance of tax evasion.
Ratio Decidendi: Where the assessing authority is satisfied that a dealer has shown prices below the prevailing market price with a view to evade tax, section 19B authorises estimation of value on market-price basis and the declared consideration may be rejected.
TaxTMI 
