https://www.taxtmi.com/caselaws?id=181559 A proposed share buy-back to a Mauritius resident was treated as a colourable device rather than a genuine commercial restructuring because the company had accumulated reserves and the offer was selectively accepted. On that basis, the payment was characterised in substance as dividend, not capital gains, and was held taxable in India under Article 10 of the India-Mauritius DTAC and the domestic definition of dividend. As the remittance constituted taxable income in India, the company was also required to deduct tax at source on the buy-back proceeds. en-us Thu, 22 Mar 2012 00:00:00 +0530 Tue, 19 Apr 2016 18:22:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181559 A proposed share buy-back to a Mauritius resident was treated as a colourable device rather than a genuine commercial restructuring because the company had accumulated reserves and the offer was selectively accepted. On that basis, the payment was characterised in substance as dividend, not capital gains, and was held taxable in India under Article 10 of the India-Mauritius DTAC and the domestic definition of dividend. As the remittance constituted taxable income in India, the company was also required to deduct tax at source on the buy-back proceeds. Case-Laws Income Tax Thu, 22 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181559