https://www.taxtmi.com/caselaws?id=425981 The Tribunal allowed the appeals of the assessee, holding that section 56(2)(viia) does not apply to buy-back transactions. The addition made by the Assessing Officer was deemed unsustainable as the shares bought back do not become property of the company. The decision was based on the interpretation that the legislative intent behind the provision was to prevent abuse and not to apply to normal business transactions like buy-backs. The findings were applied to the subsequent assessment year, resulting in the allowance of both appeals. en-us Wed, 03 Aug 2022 00:00:00 +0530 Fri, 05 Aug 2022 08:54:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=425981 The Tribunal allowed the appeals of the assessee, holding that section 56(2)(viia) does not apply to buy-back transactions. The addition made by the Assessing Officer was deemed unsustainable as the shares bought back do not become property of the company. The decision was based on the interpretation that the legislative intent behind the provision was to prevent abuse and not to apply to normal business transactions like buy-backs. The findings were applied to the subsequent assessment year, resulting in the allowance of both appeals. Case-Laws Income Tax Wed, 03 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=425981