# PR. COMMISSIONER OF INCOME TAX vs. M/S GLOBE CAPITAL MARKET LTD.

> HC judgment dated 7 Apr 2026. Citation: TCN-2026-HC-00014. The appeal challenges an order by the Income Tax Appellate Tribunal which rejected the Income Tax…

- **Court:** HC
- **Order date:** 7 Apr 2026
- **Citation:** TCN-2026-HC-00014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/gauhati-high-court-kohima/pr-commissioner-of-income-tax-vs-ms-globe-capital-market-ltd-110c5827

## Summary

### Background

The appeal challenges an order by the Income Tax Appellate Tribunal which rejected the Income Tax Department's appeal against an order that had rejected the department's assessment related to a buyback of shares.

## Facts

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.

…

## Issues and analysis

### Issue 1: Applicability of Section …

**Ratio:** Section 68 of the Companies Act and its associated procedures govern the purchase of a

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**Reasoning:** Buying a company's own shares is alien to the concept of corporate entity unless done

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**Interpretation:** Buy-back of shares essentially means a reduction of capital, requiring

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**Application:** The respondent-company, as per Section 68, must have mutilated or destroyed the

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## Parties

- **Judges:** DINESH…; J.…; +1 more
- **Appellants:** PR. COMMISSIONER…; CENTRAL…
- **Respondents:** M/S GLOBE CAPITAL…
- **Other parties:** Income…; Buyback of…; +1 more

## Timeline

- **30.01.2023 — CIT(A) O…**: The Commissioner of Income Tax (Appeals) [CIT(A)] allowed the appeal filed by the…
- **25.09.2023 — Tribunal…**: The Tribunal rejected the appeal of the Income…

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