Dcit, Central Circle-15, New Delhi vs Globe Capital Market Limited, New Delhi on 25 September, 2023
In DCIT Circle-25(2),
New Delhi vs. TPS Infrastructure Ltd., the Delhi Tribunal in its order dated
14.12.2022 in ITA No. 6433/Del/2018 reported in 2022(12) TMI 693
followed the order of Mumbai Bench of the Tribunal in the case of M/s
Vohra Financial Services Pvt. Ltd. 2018 (7) TMI 64 and held that the
provisions of section 56(2)(viia) of the Act are applicable only in the cases
where the purchased shares became property in the hands of the buyer
company and, if the shares are of any other company. However, in the case
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ITA No. 967/Del/2023
under consideration the assessee purchased its own shares under buyback
scheme and, as per the submissions made by the Ld. Counsel at the bar,
the same has been extinguished by reducing the paid up capital of the
assessee company.