https://www.taxtmi.com/caselaws?id=447672 The Madras HC granted interim stay of recovery proceedings against an assessee challenging dividend treatment under section 2(22) for consideration paid to purchase own shares. The assessee argued such payments should be taxed as capital gains under section 46A, supported by subsequent legislative amendment in section 115QA. The court ordered payment of Rs. 1500 crores in cash or bank guarantee plus property security for balance liability within four weeks. Upon compliance, revenue must release lien on remaining fixed deposits. Non-compliance results in automatic vacation of stay order, permitting revenue recovery through legal means. en-us Thu, 21 Dec 2023 00:00:00 +0530 Fri, 12 Jul 2024 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447672 The Madras HC granted interim stay of recovery proceedings against an assessee challenging dividend treatment under section 2(22) for consideration paid to purchase own shares. The assessee argued such payments should be taxed as capital gains under section 46A, supported by subsequent legislative amendment in section 115QA. The court ordered payment of Rs. 1500 crores in cash or bank guarantee plus property security for balance liability within four weeks. Upon compliance, revenue must release lien on remaining fixed deposits. Non-compliance results in automatic vacation of stay order, permitting revenue recovery through legal means. Case-Laws Income Tax Thu, 21 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447672