Updater Services Limited Vs DCIT (ITAT Chennai)
ITAT Chennai held that the matter of buyback through High Court approved scheme of arrangment remitted back for verification of NAV valuation under rule 11UA and also to analyize applicability of section 115QA. Accordingly, appeal restored back.
Facts- The assessee Updater Services Limited is engaged in the business of providing manpower and facility management services to various industries such as information technology, manufacturing, hospitality, catering services, etc. The case of the assessee was selected for scrutiny assessment. The AO passed the assessment order u/s.143(3) of the Act on 26.12.2019 with an addition of Rs.12,11,48,267/- u/s.36(1)(va) of the Act.
Against the above order of the AO, the Ld.PCIT issued a show cause notice dated 10.03.2021 u/s.263 of the Act observing applicability of Section 115QA of the Act to the transaction of buy-back of shares; applicability of Section 56(2)(via) of the Act to the transaction of buy-back of shares and disallowance of proportionate interest relating to working capital loan, if any, utilized towards buy-back of shares during the subject, year.
Aggrieved with the order of the Ld.PCIT u/s.263 of the Act, the assessee filed an appeal before this Tribunal, which was dismissed by this Tribunal on 18.04.2023.
