The Income Tax Department appealed against the order of the CIT(A) which allowed the assessee's appeal.

The assessee company engaged in the business of share broking and clearing of trades.

The AO found that during the AY 2018-19, the assessee company made a buyback of 28,62,500 equity shares at Rs.313.40 per share.

The fair market value of each share as per Rule 11UA of the Income Tax Rules, 1962 was Rs.370.46.

The AO added Rs.16,33,34,250 to the income of the assessee under section 56(2)(x) of the Act of 1961.

The CIT(A) allowed the appeal, stating that the transaction was not a purchase of shares simpliciter but a purchase of its own shares under buy-back offer.

The Department's appeal against the CIT(A)'s order was rejected by the Tribunal.

The Income Tax Department appealed against the order of the CIT(A) which allowed the assessee's appeal.

The assessee company engaged in the business of share broking and clearing of trades.

The AO found that during the AY 2018-19, the assessee company made a buyback of 28,62,500 equity shares at Rs.313.40 per share.

The fair market value of each share as per Rule 11UA of the Income Tax Rules, 1962 was Rs.370.46.

The AO added Rs.16,33,34,250 to the income of the assessee under section 56(2)(x) of the Act of 1961.

The CIT(A) allowed the appeal, stating that the transaction was not a purchase of shares simpliciter but a purchase of its own shares under buy-back offer.

The Department's appeal against the CIT(A)'s order was rejected by the Tribunal.