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: 

Durin

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