Gains to shareholders due to buy-back of shares amounted to dividend not capital gain

Cognizant Technology Solutions India Pvt. Ltd. Vs DCIT (Madras High Court) Conclusion: Shares purchased pursuant to the order of Company Court would not amount to capital gain and rather to be treated as a dividend.Whenever a company distributes its profits to its shareholders, the profit so disbursed, will amount to dividend and Dividend Distribution Tax at 15% was required to be paid by assessee u/s 115O. Held:  During the year 2016 under the Scheme of Arrangement and Compromise, assessee planned to purchase its own shares u/s 391 to 393.  The gain arising to the shareholders in the course...