Applicability of buyback tax under section 115QA prior to 01-06-2016 on court approved capital reduction scheme under section 100-104 of Companies Act, 1956

Facts:

Assessee an IT company got a capital reduction scheme under section 100-104 of Companies Act, 1956 whereby share capital was returned back to the shareholders at a premium. Stand of the revenue was that this buyback via capital reduction since refunded excess amount beyond par value was taxable under section 115QA. Stand of the assessee was that prior to 01-06-2016 Section 115QA only covered buyback under section 77A of the Companies Act, 1956 and not to buy back under capital reduction scheme under section 100-104 of Companies Act, 1956. CIT(A) went with the assessee to which revenue went in higher appeal to ITAT -

Held against the revenue that prior to 01-06-2016 or pre-amended law buy back tax law under section 115QA taxed buyback only under section 77A of the Companies Act, 1956 and not to other buy back possibilities under the law. 

Case: ACIT v. Meriton Infotech (P) Ltd. 2024 TaxPub(DT) 311 (Mum-Trib)