In ACIT v. Gamma Pizzakraft Lanka (Pvt.) Ltd. (ITA Nos. 26 & 27/Del/2025, pronounced 12.08.2026), the ITAT Delhi held that the buy-back of its own shares by a Sri Lankan non-resident company does not result in acquisition of ‘property’ for Section 56(2)(viia), and the Revenue failed to establish any receipt, accrual or source in India under Sections 5(2) and 9, resulting in deletion of the addition of Rs. 14.95 crore. With the foundation removed, the consequential concealment penalty of Rs. 6.47 crore under Section 271(1)(c) could not survive, and both Revenue appeals were dismissed.
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