https://www.taxtmi.com/caselaws?id=299322 Buy-back of shares made before 1.6.2013 could not be re-characterised as dividend distribution, because payment for purchase of a company's own shares under section 77A of the Companies Act, 1956 was excluded from dividend under section 2(22)(iv) of the Income-tax Act, and section 115QA applied only from 1.6.2013. The stated tax clarification also treated such pre-1.6.2013 buy-back receipts as capital gains in the hands of the recipient, not dividend. Accordingly, dividend distribution tax could not be levied merely because the shareholder was treaty-protected. The question whether the buy-back price exceeded fair market value was left open and remitted for examination. en-us Wed, 22 Feb 2017 00:00:00 +0530 Fri, 10 Dec 2021 08:34:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299322 Buy-back of shares made before 1.6.2013 could not be re-characterised as dividend distribution, because payment for purchase of a company's own shares under section 77A of the Companies Act, 1956 was excluded from dividend under section 2(22)(iv) of the Income-tax Act, and section 115QA applied only from 1.6.2013. The stated tax clarification also treated such pre-1.6.2013 buy-back receipts as capital gains in the hands of the recipient, not dividend. Accordingly, dividend distribution tax could not be levied merely because the shareholder was treaty-protected. The question whether the buy-back price exceeded fair market value was left open and remitted for examination. Case-Laws Income Tax Wed, 22 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299322