Transferring part of building for managing threshold limit for levy of luxury tax is tax evasion

Kottila Veetil Krishnakumar Vs State of Kerala (Kerala High Court) Kerala High Court held that transferring 1st floor of the building to wife for reducing limit below prescribed threshold limit for levy of luxury tax is tax evasion and not tax planning. Hence, petition dismissed. Facts- The petitioner has approached this Court challenging the levy of luxury tax under the provisions of the Kerala Building Tax Act, 1975. It is the case of the petitioner that the petitioner had initially constructed a two story residential building with a total area of 315.08 Sq.m. It is stated that the assessmen...