Prima facie scope of Section 115QA confined to buy-back transactions; interim enforcement stayed pending hearing.

Section 115QA was read, at a prima facie stage, as confined by its non obstante language to buy-back transactions then covered by Section 77A of the Companies Act, 1956. The later amendment widening the definition of buy-back was treated as supporting the view that the expanded scope was not retrospective. On that basis, enforcement of the impugned demand was stayed until the next hearing.

---

---

Issues: Whether the demand raised under Section 115QA of the Finance Act, 2013 should be stayed pending hearing on the ground that, prima facie, the levy is confined to buy-back transactions covered by Section 77A of the Companies Act, 1956.

Analysis: The Court noted that the levy under Section 115QA was, on a prima facie reading, confined by the non obstante clause to the transactions defined in the provision itself. It also observed that the transactions then contemplated were those covered by Section 77A of the Companies Act, 1956. The Court further relied on the subsequent amendment expanding the definition of buy-back beyond Section 77A, and treated the absence of retrospective effect as supporting the petitioner's position at the interim stage.

Conclusion: The impugned demand to the extent it sought to recover levy under Section 115QA was directed not to be enforced until the next date of hearing, in favour of the petitioner.

---