Section 115QA — the law in short
What the courts have decided on section 115QA, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Cognizant Technology Solutions India P Ltd v ACIT
ITATHelps departmentUnder appeal
We repurchased shares through a court-approved scheme. Can the department still call it a dividend?
On these facts, yes. The Chennai Tribunal held the repurchase was a colourable device — in substance a reduction of capital releasing the company's assets to shareholders — taxable as deemed dividend under s.2(22)(d), alternatively s.2(22)(a), with dividend distribution tax under s.115-O payable by the company. The High Court's sanction of the scheme conferred no tax immunity.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.