Share buy back can be made at a price lower than FMV or Book Value: ITAT

M/s Vora Financial Services Pvt Ltd Vs ACIT (ITAT Mumbai)  Buy Back of securities below FMV As we have known till date, in case of buy back of equity shares of a private limited company, the tax liability on the same, in the hands of the company, was as under: 1. Where the buy back was without a consideration: the whole fair market value(FMV) of such shares was taxable; 2. Where the buy back was at a price below the FMV (where difference between the actual price received and FMV being more than Rs. 50,000): The whole difference between the Actual price and the FMV becomes taxable. However, as...