During year, assessee company made buy back of its equity shares at rate of Rs. 313.40 per share. Assessing Officer\u00a0 held that\u00a0 fair market value of shares as per rule 11UA was Rs. 370.46 per share. He held that buyback of share resulted into acquisition of property, namely, shares, and therefore, section 56(2)(x) and rule 11UA\u00a0 applied to assessee. Accordingly, he treated the\u00a0 difference as income of assessee under section 56(2)(x) of the Act. CIT(A) deleted the addition. On appeal the Tribunal held that\u00a0\u00a0 since assessee had bought back its own shares under buy back scheme and same had been extinguished by reducing paid up capital of assessee company, Commissioner (Appeals) was justified in holding that provisions of section 56(2)(x) and consequently rule 11UA would not be applicable.\u00a0 (AY. 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56 : Income from other sources-Buy back of own shares-Provision of section 56(2)(x) and consequentially rule 11UA would be inapplicable.[S. 56(2)(x), R. 11UA] <\/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":[21],"tags":[],"class_list":["post-44545","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bAt","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44545","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=44545"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44545\/revisions"}],"predecessor-version":[{"id":44546,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44545\/revisions\/44546"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}