|
Tax Publishers
Applicability of buyback tax under section 115QA
prior to 01-06-2016 on court approved capital reduction scheme under section
100-104 of Companies Act, 1956
Facts:
Assessee an IT company got a capital reduction scheme under
section 100-104 of Companies Act, 1956 whereby share capital was returned
back to the shareholders at a premium. Stand of the revenue was that this
buyback via capital reduction since refunded excess amount beyond par value was
taxable under section 115QA. Stand of the assessee was that prior to 01-06-2016
Section 115QA only covered buyback under section 77A of the Companies Act, 1956
and not to buy back under capital reduction scheme under section 100-104
of Companies Act, 1956. CIT(A) went with the assessee to which
revenue went in higher appeal to ITAT -
Held against the revenue that prior to 01-06-2016 or
pre-amended law buy back tax law under section 115QA taxed
buyback only under section 77A of the Companies Act, 1956 and
not to other buy back possibilities under the law.
Case: ACIT v.
Meriton Infotech (P) Ltd. 2024 TaxPub(DT) 311 (Mum-Trib)
|