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“buyback of shares”

Capital GainsSection 46A / 115QASection 46A / 115QA51 judgments

The decision most relied on for buyback of shares is Pentamedia Graphics Ltd. v. ITO (236 CTR 204), cited in 17 judgments on BharatTax.

Leading authorities on buyback of shares

Pentamedia Graphics Ltd. v. ITO
236 CTR 204 · 2011 · High Court
17
citing judgments

Once a scheme of arrangement is approved by a court and is within the bounds of the law, it is binding on tax authorities.

Principal Commissioner of Income Tax v. Bayer Vapi (P.) Ltd.
106 Taxmann.com 395 · 2019 · High Court
11
citing judgments

Buyback of its own shares by a company is neither capital expenditure nor does it result in enduring benefits to the company. The consideration of non-deduction of TDS, which was evident from Form 3CD and not considered in the original assessment order, is not a change of opinion for reopening.

CIT v. Selan Exploration Technology Ltd.
188 Taxmann 1 · 2010 · High Court
11
citing judgments

Expenses incurred for buyback of shares are an allowable business expense for the purpose of computation of income. Such expenditure is not in the nature of capital expenditure and is not required to be capitalised.

Vora Financial Services (P) Ltd. v. ACIT
96 Taxmann.com 88 · 2018 · ITAT
10
citing judgments

Shares bought back by a company are not considered the property of the assessee for the purpose of Section 56(2)(viia), as a company cannot hold its own shares as property.

Judgments citing buyback of shares

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 803/IND/2019[2012-13]Status: DisposedITAT Indore31 Jan 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 802/IND/2019[2011-12]Status: DisposedITAT Indore31 Jan 2024AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 801/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 800/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 799/IND/2019[2015-16]Status: DisposedITAT Indore31 Jan 2024AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 798/IND/2019[2014-15]Status: DisposedITAT Indore31 Jan 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 797/IND/2019[2013-14]Status: DisposedITAT Indore31 Jan 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 796/IND/2019[2012-13]Status: DisposedITAT Indore31 Jan 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 795/IND/2019[2011-12]Status: DisposedITAT Indore31 Jan 2024AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 794/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 793/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 791/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 790/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 789/IND/2019[2012-13]Status: DisposedITAT Indore31 Jan 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 788/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 787/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

from M/s Agroh Infrastructure Developers Pvt. Ltd (In short AIDPL) and on other hand accepts the same to be cash- buyback of shares. The AO has also held that interest amounting to Rs. 14,83,394/- was charged by AIDPL. Whereas the said document only records some purported cash received ... appellant and the impugned loose papers were not found from premises of the appellant. Therefore, the AO is not justified in presuming buyback of shares as cash loan and interest on a loan was equally hypothetical. The statement given which has to be used against the assesse

ACIT-1(2)(1, Mumbai vs. Meriton Infotech Pvt Ltd., Mumbai

ITA 741/MUM/2023[2017-18]Status: DisposedITAT Mumbai12 Jan 2024AY 2017-18

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Meriton Infotech Pvt. Ltd. G-4, Khetan Bhavan, Acit -1(2)(1) Ek Omkar Premises Co- Room No. 535, Aaykar Ops, Bhavan, Vs. 198, Jamshedji Tata Road, M.K. Road, Mumbai-400 020 Churchgate, Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaecm4348N Assessee By : Shri Vijay Mehta, Ar Revenue By : Shri Manoj Kumar Sinha, Dr Date Of Hearing: 01.12.2023 Date Of Pronouncement : 12.01.2024

For Appellant: Shri Vijay Mehta, ARFor Respondent: Shri Manoj Kumar Sinha, DR
Section 101Section 115Section 115QSection 142(1)Section 143(2)Section 143(3)

well as to section 100 to 104 of the Companies Act by a tabular composition of provisions governing buyback of shares and reduction of capital. It was the claim that in the Companies Act, 1956, the provisions of buy back of shares are cover under Section ... provisions of Section 115QA of the Act introduced with effect from 1st June, 2013, iv. He submits that earlier even in the buyback of shares as well as in the return of capital there was no incidence of taxation in the hands of the company. Prior to that date

Mahanadi Coalfields Ltd., Burla, Sambalpur vs. DCIT Circle2(1), Sambalpur

In the result, appeal filed by the revenue being ITA No

ITA 41/CTK/2023[2020-21]Status: DisposedITAT Cuttack17 Oct 2023AY 2020-21

Bench: Shri George Mathan & Shri Girish Agrawalआयकर अऩीऱ सं/Ita Nos.14 To 17/Ctk/2023 & आयकर अऩीऱ सं/Ita No.41/Ctk/2023 (ननधाारण वषा / Assessment Years : 2016-2017 To 2020-2021) Mahanadi Coalfields Limited, Vs Acit/Dcit, Circle-2(1), Sambalpur Jagriti Vihar, Burla, Sambalpur-768020 Pan No. :Aabcm 5188 P & आयकर अऩीऱ सं/Ita Nos.70 To 73/Ctk/2023 & आयकर अऩीऱ सं/Ita No.147/Ctk/2023 (ननधाारण वषा / Assessment Years : 2016-2017 To 2020-2021) Acit/Dcit, Circle-2(1), Sambalpur Vs Mahanadi Coalfields Limited, Jagriti Vihar, Burla, Sambalpur-768020 Pan No. :Aabcm 5188 P & आयकर अऩीऱ सं/Ita No.69/Ctk/2023 (ननधाारण वषा / Assessment Year : 2015-2016) Acit/Dcit, Circle-2(1), Sambalpur Vs Mahanadi Coalfields Limited, Jagriti Vihar, Burla, Sambalpur-768020 Pan No. :Aabcm 5188 P (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee By : Shri S.S.Poddar, Ca राजस्व की ओर से /Revenue By : Dr. Abani Kanta Nayak, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 17/10/2023 घोषणा की तारीख/Date Of Pronouncement : 17/10/2023 आदेश / O R D E R Per Bench :

For Appellant: Shri S.S.Poddar, CAFor Respondent: Dr. Abani Kanta Nayak, CIT-DR
Section 271(1)(c)

ground in revenue’s appeal for the assessment year 2017-2018 stands dismissed. 47. The next issue in regard to the expenses on buyback of shares, which has been raised by the revenue in its appeal for A.Y.2017-2018. 48. Ld. CIT-DR vehemently supported the order ... reply, ld. AR submitted that the expenses on buyback of shares were incurred towards professional charges paid for obtaining the valuation certificate required as per the law for buyback of the assessee’s shares. It was the submission that the ld. CIT(A) has followed the decision

Mahanadi Coalfields Ltd., Burla, Sambalpur vs. DCIT Circle2(1), Sambalpur

In the result, appeal filed by the revenue being ITA No

ITA 14/CTK/2023[2016-17]Status: DisposedITAT Cuttack17 Oct 2023AY 2016-17

Bench: Shri George Mathan & Shri Girish Agrawalआयकर अऩीऱ सं/Ita Nos.14 To 17/Ctk/2023 & आयकर अऩीऱ सं/Ita No.41/Ctk/2023 (ननधाारण वषा / Assessment Years : 2016-2017 To 2020-2021) Mahanadi Coalfields Limited, Vs Acit/Dcit, Circle-2(1), Sambalpur Jagriti Vihar, Burla, Sambalpur-768020 Pan No. :Aabcm 5188 P & आयकर अऩीऱ सं/Ita Nos.70 To 73/Ctk/2023 & आयकर अऩीऱ सं/Ita No.147/Ctk/2023 (ननधाारण वषा / Assessment Years : 2016-2017 To 2020-2021) Acit/Dcit, Circle-2(1), Sambalpur Vs Mahanadi Coalfields Limited, Jagriti Vihar, Burla, Sambalpur-768020 Pan No. :Aabcm 5188 P & आयकर अऩीऱ सं/Ita No.69/Ctk/2023 (ननधाारण वषा / Assessment Year : 2015-2016) Acit/Dcit, Circle-2(1), Sambalpur Vs Mahanadi Coalfields Limited, Jagriti Vihar, Burla, Sambalpur-768020 Pan No. :Aabcm 5188 P (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee By : Shri S.S.Poddar, Ca राजस्व की ओर से /Revenue By : Dr. Abani Kanta Nayak, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 17/10/2023 घोषणा की तारीख/Date Of Pronouncement : 17/10/2023 आदेश / O R D E R Per Bench :

For Appellant: Shri S.S.Poddar, CAFor Respondent: Dr. Abani Kanta Nayak, CIT-DR
Section 271(1)(c)

ground in revenue’s appeal for the assessment year 2017-2018 stands dismissed. 47. The next issue in regard to the expenses on buyback of shares, which has been raised by the revenue in its appeal for A.Y.2017-2018. 48. Ld. CIT-DR vehemently supported the order ... reply, ld. AR submitted that the expenses on buyback of shares were incurred towards professional charges paid for obtaining the valuation certificate required as per the law for buyback of the assessee’s shares. It was the submission that the ld. CIT(A) has followed the decision

DCIT Corporate Circle 3(2), Chennai vs. Venture Lighting India Limited, Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 3171/CHNY/2019[2011-12]Status: DisposedITAT Chennai14 Dec 2022AY 2011-12

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri P. Sajit Kumar, JCITFor Respondent: Shri N. Arjun Raj, CA
Section 143(3)Section 56(2)(viia)

returned income of the assessee. Aggrieved, assessee preferred appeal before CIT(A). 6.1 The CIT(A) noted that the buyback of shares does not attract the provisions of section 56(2)(viia) of the Act, because the assessee had only brought back its own share from its shareholder and reduced ... section 56(2)(viia) of the Act will not apply to the scheme of buyback of the assessee. According to CIT(A), buyback of shares are in compliance with the provisions of Section 77A of the Companies Act and even it would not attract provisions of section