https://www.taxtmi.com/caselaws?id=272306 Buy-back of shares under the statutory buy-back regime is distinct from reduction of capital and, under the law applicable to the transaction, the shareholder's receipt is to be taxed under the special capital gains provisions rather than as deemed dividend. Where the consideration is so characterised, the payer is not exposed to withholding liability under section 195; alternatively, dividend treatment would still not support tax deduction at source because dividend distribution tax applies under section 115-O. A lawful buy-back is not a colourable device merely because it results in a lower tax incidence, and the consequent demand under sections 201(1) and 201(1A) was set aside. en-us Fri, 12 Feb 2016 00:00:00 +0530 Thu, 03 Mar 2016 10:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272306 Buy-back of shares under the statutory buy-back regime is distinct from reduction of capital and, under the law applicable to the transaction, the shareholder's receipt is to be taxed under the special capital gains provisions rather than as deemed dividend. Where the consideration is so characterised, the payer is not exposed to withholding liability under section 195; alternatively, dividend treatment would still not support tax deduction at source because dividend distribution tax applies under section 115-O. A lawful buy-back is not a colourable device merely because it results in a lower tax incidence, and the consequent demand under sections 201(1) and 201(1A) was set aside. Case-Laws Income Tax Fri, 12 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272306