https://www.taxtmi.com/caselaws?id=456556 The ITAT Delhi dismissed the Revenue's appeal regarding addition under section 56(2)(x) for deemed income on share buyback. The assessee company bought back its own shares at Rs. 313.40 per share against fair market value of Rs. 370.46 per share determined under Rule 11UA. Following precedents from Delhi, Mumbai, Hyderabad and Chennai Tribunals, particularly TPS Infrastructure Ltd. and Vohra Financial Services Pvt. Ltd., the Tribunal held that section 56(2)(viia) provisions apply only when purchased shares become property of the buyer company. Since the assessee purchased its own shares under buyback scheme which were extinguished by reducing paid-up capital, the provisions were inapplicable to own share buybacks. en-us Mon, 25 Sep 2023 00:00:00 +0530 Thu, 01 Aug 2024 08:28:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456556 The ITAT Delhi dismissed the Revenue's appeal regarding addition under section 56(2)(x) for deemed income on share buyback. The assessee company bought back its own shares at Rs. 313.40 per share against fair market value of Rs. 370.46 per share determined under Rule 11UA. Following precedents from Delhi, Mumbai, Hyderabad and Chennai Tribunals, particularly TPS Infrastructure Ltd. and Vohra Financial Services Pvt. Ltd., the Tribunal held that section 56(2)(viia) provisions apply only when purchased shares become property of the buyer company. Since the assessee purchased its own shares under buyback scheme which were extinguished by reducing paid-up capital, the provisions were inapplicable to own share buybacks. Case-Laws Income Tax Mon, 25 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456556