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2021 (12) TMI 394 - AT - Income TaxTDS u/s 195 - deduct tax at source on the remittance to IIRF Holdings XVI Ltd. towards buyback of shares - AO was of the firm belief that neither any tax has been deducted at all in respect of the above remittances to the non-residents nor any copy of the order has been furnished by the assessee u/s 195(2) /195(3) of the Act or certificate issued u/s 197(1) - HELD THAT:- As gone through the statement of HSBC placed at PDF. We find that the remittances have been made on 31.05.2013 which conclusively proves that the assessee company remitted the buy-back of equity shares on or before 31.05.2013 which makes the CBDT Circular 3/2016 dated 26.02.2016 squarely applicable as in that Circular, the Board has categorically spelled out that the consideration received on 01.04.2000 to 31.05.2013 would be taxed as capital gains in the hands of the recipients in accordance with section 46A of the Act and no such amount shall be treated as dividend in view of provisions of section 222(iv) of the Act. We are of the considered view that the facts of the case squarely fall within the circular of CBDT [supra] which is binding on the Revenue authorities and has been rightly followed by the first appellate authority. Therefore, no interference is called for.
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