https://www.taxtmi.com/caselaws?id=345994 A penalty for undervaluation under the U.P. Value Added Tax Act could not rest on a ground not covered by the show-cause notice, because the assessee was not put to notice under the relevant provision and a penalty cannot travel beyond its pleaded foundation. Undervaluation also had to be assessed by reference to the local market rate at the place of transaction; reliance on rates from other cities did not satisfy the statutory test. The penalty order was therefore unsustainable, and the matter was remitted for further proceedings in accordance with law. en-us Mon, 24 Jul 2017 00:00:00 +0530 Wed, 02 Aug 2017 08:38:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=345994 A penalty for undervaluation under the U.P. Value Added Tax Act could not rest on a ground not covered by the show-cause notice, because the assessee was not put to notice under the relevant provision and a penalty cannot travel beyond its pleaded foundation. Undervaluation also had to be assessed by reference to the local market rate at the place of transaction; reliance on rates from other cities did not satisfy the statutory test. The penalty order was therefore unsustainable, and the matter was remitted for further proceedings in accordance with law. Case-Laws VAT and Sales Tax Mon, 24 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=345994