{"id":19505,"date":"2021-06-19T21:19:39","date_gmt":"2021-06-19T15:49:39","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=19505"},"modified":"2021-06-28T19:20:28","modified_gmt":"2021-06-28T13:50:28","slug":"whether-provisions-of-section-562x-and-section-50ca-of-it-act-will-be-applicable-in-case-buy-back-of-shares","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/whether-provisions-of-section-562x-and-section-50ca-of-it-act-will-be-applicable-in-case-buy-back-of-shares\/","title":{"rendered":"whether provisions of section 56(2)(X) and section 50CA of IT act. will be applicable in case buy back of shares."},"content":{"rendered":"<p>Facts:<\/p>\n<p>In case of a unlisted company, buying back it&#8217;s own shares at face value of Rs.10\/- when the fair market value of share\u00a0 as per income tax rules, is\u00a0 Rs.300\/ and the\u00a0 said share ,was allotted at a premium of Rs.90\/-.<\/p>\n<p>Query:<\/p>\n<p>Whether provisions of section 56(2)(X) and section 50CA of IT act providing deeming fiction of income ,\u00a0 shall be applicable ?<\/p>\n<p>Whether benefit of the Hon&#8217;ble\u00a0 Mumbai Bench ITAT decision in case of VORA FINANCE\u00a0 shall be available to the assessee company and also the shareholder and the difference\u00a0 in the buy back price and FMV shall escape assessment as income, either in the hands of company or in\u00a0 the hands of shareholder.?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[142,125],"class_list":["post-19505","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-buy-back-of-shares","qa_tag-income-from-other-sources"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/19505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=19505"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=19505"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=19505"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=19505"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=19505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}