Deemed Dividend Classification Automatically Triggers Section 10(34) Exemption: ITAT Mumbai

Advertisement Navroze Shiamak Marshall Vs ITO (ITAT Mumbai) Revenue Itself Treated It as Deemed Dividend – Then Exemption u/s 10(34) Must Follow- Mumbai ITAT Deletes Tax on Share Buyback n an interesting and significant ruling, the Mumbai ITAT held that where the Revenue itself treats consideration received on buyback/reduction of share capital as deemed dividend u/s 2(22)(d), the consequential exemption u/s 10(34) cannot be denied to the shareholder. The assessee had purchased shares of Spirax Marshall Pvt. Ltd. in March 2006 and sold them back to the company under a scheme of arrang...