Cognizant Technology Solutions India ... vs Deputy Commissioner Of Income Tax Large ...

The Supreme Court addressed the legality of the buy-back of shares by Cognizant Technology Solutions India Pvt. Ltd. under Sections 391 to 393 of the Companies Act, 1956, and the implications of tax deductions under the Income Tax Act. The Court held that the appellant was liable to deduct tax at source on remittances made to non-residents, as per Rule 37BB of the Income Tax Rules, 1962. The Court emphasized the necessity of compliance with tax obligations, affirming the Deputy Commissioner's authority to assess tax liabilities on such transactions.