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1972 (10) TMI 7 - BOMBAY HIGH COURTComputation of capital gains when an assessee has sold the bonus shares allotted to him - Whether, for the purposes of computation of capital gains, was the assessee entitled to deduct the face value of the bonus shares from their sale value as the 'actual cost' of those shares to the assessee within the meaning of section 12B(2) - correct method of valuing the cost to a person of the bonus shares is to take the cost of the original shares, spread it over the original shares and the bonus shares collectively and find out the average price of all the shares - instead of being a dealer in shares, the same principle will apply if the assessee is an investor in shares. Even in case of an assessee, who was an investor in shares, the capital gain of bonus shares has to be calculated in accordance with the method of valuation laid down by the Supreme Court in Gold Mohore Investment Co. Ltd.'s case
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