COGNIZANT TECHNOLOGY SOLUTIONS INDIA PVT LTD Vs. DEPUTY COMMISSIONER OF INCOME TAX, LARGE TAX PAYER UNIT

JUDGEMENT

(1.) The appellant sought for an approval of the Scheme under Sections 391 to 393 of the Companies Act, 1956, involving purchase of shares from its shareholders in C.P.No.102 of 2016.

(2.) The Scheme filed by the appellant was approved by this Court on 18.04.2016. In pursuant to the same, the appellant bought back the shares from its shareholders and accordingly, it was treated as capital gains. Thus, a sum of Rs.898.01 crores was withheld as TDS for the amount paid to its shareholders as per the return filed by it.

(3.) The respondent sought for certain details of the remittances made by the appellant to its overseas shareholders. The appellant sent its reply while furnishing the details sought for. Anticipating that the respondent would treat the transaction as that of the defendant, the appellant filed an application before the Authority of Advance Ruling ('AAR') under Section 245Q of the Income Tax Act, 1961, warranting a ruling on the amount received by its shareholders in lieu of the shares bought back.