2017 (1) TMI 1761

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..... efined are those covered by Section 77A of the Companies Act. Significantly, the Parliamentary intent to cover all manners of share acquisition by the Company of its own shares, is evident from a subsequent amendment to Section 115QA of the Act, when it explained the meaning of buy-back in the First Explanation by not alluding merely to Section 77A of the Companies Act but all other provisions of law. That this provision was not given retrospective effect, in this Court s opinion, further strengthens the petitioner s submissions. In view of these prima facie reasons, the Court is of the opinion that the impugned demand to the tune it seeks to recover levy under Section 115QA of the Act should not be enforced till the next date of heari .....

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..... d out that the levy by virtue of Section 115QA (1) and (2) of the Act is confined to, what is defined as buy-back under Explanation (i) to Section 115QA (1). Elaborating on this, it is argued that non obstante clause, which changed the definition as well as the charging provision under Section 115QA, confines the levy only to transactions that are covered by it. The solitary nature of the transactions covered is the buy-back in terms of Section 77A of the Companies Act, 1956. It was submitted that in all other instances where buy-back arrangements are resorted to in accordance with law, such as for approval of a scheme of compromise and arrangement under Section 391 of the Companies Act, the levy would not apply. 8. Learned counsel r .....

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..... the transactions defined by the provision itself. The transactions defined are those covered by Section 77A of the Companies Act. Significantly, the Parliamentary intent to cover all manners of share acquisition by the Company of its own shares, is evident from a subsequent amendment to Section 115QA of the Act, when it explained the meaning of buy-back in the First Explanation by not alluding merely to Section 77A of the Companies Act but all other provisions of law. That this provision was not given retrospective effect, in this Court s opinion, further strengthens the petitioner s submissions. 11. In view of these prima facie reasons, the Court is of the opinion that the impugned demand to the tune it seeks to recover levy under Sec .....

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