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2011 (7) TMI 153 - ITAT, MUMBAIDisallowed - Assessment u/s 143(3) - Bonus shares treated as foreign exchange assets - Benifit u/s 115F - Hence, assessee acquired the original shares by investing in convertible foreign exchange and, therefore, it cannot be said that the bonus shares are acquired in isolation without taking into consideration the original shares acquired by the assessee - There is no doubt that on the issuance of the bonus shares, the value of the original shares is proportionately diminished. In simple language it is 'split up'- As such, the cost of acquisition of the original shares and their value is closely interlinked and interdependent on the issue of bonus shares - Therefore, once the bonus shares are issued, the averaging out formula has to be followed with regard to all the shares" - Hence, the bonus shares acquired by the assessee are covered by section 115C(b) of the Act, and the same are eligible for benefit under section 115F of the Act - Decided in favour of assessee.
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