Section 115O, 115QA of Income Tax Act, 1961— Deemed dividend — The assessee was engaged in the business of development of computer software and related services. In the Financial Year 2016-17, the assessee approached the High Court with a Scheme of Arrangement and Compromise under Sections 391 to 393 of the Companies Act, 1956 to buy-back its shares. The High Court sanctioned the Scheme on 18.04.2016 in Company Petition. Thereafter, the assessee made statutory filing under Form 15 CA (under Rule 37BB of the Income Tax Rules, 1962) after obtaining requisite certificate from a Chartered Accountant in Form 15CB furnishing details of remittances made to non-residents.  The assessee’s purchase of its own shares, which is not in accordance with sec.77A of the Companies Act, will amount to dividends within the meaning of sec.2(22)(d) or 2(22)(a) of the Act, and consequently, liable for tax u/s. 115-O of the Act in the hands of the assessee company.”The assessee challenged the communication by filing Writ Petition in the High Court submitting inter alia that while the issue was pending before the AAR under Section 245Q of the Act, in view of the bar provided under Section 245RR of the Act, the matter could not have been considered. It was also submitted that the assessee was never put to notice whether it would be liable under Section 115-O of the Act. 
 Court shall not be taken to have dealt with merits or demerits of the rival contentions of the parties. The merits of the matter shall be gone into independently by the concerned authorities without being influenced, in any way, by any of the observations made by the High Court and supreme Court. The Appeal was disposed of in aforesaid terms and the judgment and order presently under appeal shall stand modified accordingly. --- COGNIZANT TECHNOLOGY SOLUTIONS INDIA PVT. LIMITED vs. Deputy CIT.[2020] 23 ITCD Online 19 (SC)