https://www.taxtmi.com/caselaws?id=448350 The ITAT Mumbai held that capital reduction undertaken by a company under sections 100-104 of the Companies Act 1956 completed on 31st May 2016 does not constitute "buyback" under section 115QA of the Income Tax Act. The tribunal distinguished between buyback under section 77A and capital reduction procedures, noting that prior to 1st June 2016, only purchases under section 77A attracted buyback tax liability. Since the company followed capital reduction provisions rather than buyback provisions, section 115QA tax was not applicable. The CIT(A)'s deletion of the tax levy was upheld, and the appeal was decided against revenue. en-us Fri, 12 Jan 2024 00:00:00 +0530 Mon, 11 Nov 2024 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448350 The ITAT Mumbai held that capital reduction undertaken by a company under sections 100-104 of the Companies Act 1956 completed on 31st May 2016 does not constitute "buyback" under section 115QA of the Income Tax Act. The tribunal distinguished between buyback under section 77A and capital reduction procedures, noting that prior to 1st June 2016, only purchases under section 77A attracted buyback tax liability. Since the company followed capital reduction provisions rather than buyback provisions, section 115QA tax was not applicable. The CIT(A)'s deletion of the tax levy was upheld, and the appeal was decided against revenue. Case-Laws Income Tax Fri, 12 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448350