ITAT clarifies that provisions of section 56(2)(x) and Rule 11UA would be inapplicable if company buys back its own shares under the buy back scheme
• Globe Capital Market Ltd1 (‘Assessee’) is a company engaged in the business of share broking and clearing of trades.
• During FY 2018-19, assessee had made buy back of its equity shares at Rs.313.40 per share. However, the fair market value as per Rule 11UA of Income Tax Rules, 1962 (the ‘Rules’) was Rs.370.46 per share.
