Buy-back

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..... ack means, the purchase by the companies of its own shares in accordance with the provisions of the Section 77 of the Companies Act. Thus, Tribunal noted that as per the said provision in force during the relevant assessment year, the buy-back pursuant to order of Company Law Board will appear under Section 402 of the Companies Act was not included. IN RE : PQR GMBH- [ 2019 (10) TMI 1437 - AUTHORI .....

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..... nd by insertion of section 46A, with effect from April 1, 2000. By these amendments buy-back of shares was excluded from the definition of dividends in section 2(22) and was specifically taxed as capital gains in section 46A of the Income-tax Act. These amendments were brought to clarify the ambiguity in regard to the taxation of buy-back of shares. The considerations received on buy-back of share .....

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..... ection 47A as the shares cease to exist after the buy-back. Such impossibility of application of section 47A, section 49 and section 155 could never be the intention of Legislature. The intention of the Legislature can never be to render any provision of the Act otiose. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - .....

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