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

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