{"id":1635,"date":"2018-07-07T03:42:25","date_gmt":"2018-07-07T03:42:25","guid":{"rendered":"http:\/\/itatonline.org\/digest\/vora-financial-service-p-ltd-v-acit-mumtrib-www-itatonline-org-2\/"},"modified":"2019-06-25T00:29:13","modified_gmt":"2019-06-25T00:29:13","slug":"vora-financial-service-p-ltd-v-acit-mumtrib-www-itatonline-org-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/vora-financial-service-p-ltd-v-acit-mumtrib-www-itatonline-org-2\/","title":{"rendered":"Vora Financial Service P. Ltd. v. ACIT ( 2018) 171 ITD 646\/ 194 TTJ 746\/ 65 ITR 77 (SN)\/( 2019) 178 DTR  58  ( Mum)(Trib), www.itatonline.org"},"content":{"rendered":"<p>Allowing the appeal of the assessee the Tribunal held that , S.56(2)(viia)\u00a0 is a counter evasion mechanism to prevent laundering of unaccounted income under the garb of gifts. The primary condition for invoking S. 56(2)(viia) is that the asset gifted should become a \u201ccapital asset\u201d and property in the hands of recipient. If the assessee-company has purchased shares under a buyback scheme and the said shares are extinguished by writing down the share capital, the shares do not become capital asset of the assessee-company and hence S. 56(2)(viia) cannot be invoked in the hands of the assessee company .( ITA No. 532\/Mum\/2018, dt. 29.06.2018) (AY. 2014-15)<\/p>\n<p><a href=\"http:\/\/itatonline.org\/archives\/wp-content\/uploads\/Vora-BuyBack-Gifts.pdf\"><strong>[Click here to download PDF file]<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 56: Income from other sources- by back of shares \u2013 S.56(2)(viia)  is a counter evasion mechanism to prevent laundering of unaccounted income under the garb of gifts. The primary condition for invoking S. 56(2)(viia) is that the asset gifted should become a \u201ccapital asset\u201d and property in the hands of recipient. If the assessee-company has purchased shares under a buyback scheme and the said shares are extinguished by writing down the share capital, the shares do not become capital asset of the assessee-company and hence S. 56(2)(viia) cannot be invoked in the hands of the assessee company [ S.56(2)(viia)]<br \/>\nA<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1635","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-qn","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/1635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=1635"}],"version-history":[{"count":6,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/1635\/revisions"}],"predecessor-version":[{"id":5917,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/1635\/revisions\/5917"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=1635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=1635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=1635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}