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1972 (7) TMI 27 - HC - Income TaxThis reference raises a short but interesting question as to what is the date from which bonus shares issued by a company can be said to be held by an assessee: is it the date when they are issued or is it the date the original shares in respect of which they are issued were acquired by the assessee ? The question assumes importance because when bonus shares are sold by the assessee and there is capital gain, the incidence of tax on such capital gain varies according as the bonus shares are short-term capital assets or long-term capital assets. If they are short term capital assets, the incidence is higher : if they are long-term capital assets, the incidence is lower : and the question whether they are short term capital assets or long-term capital assets depends on how long they have been held by the assessee immediately preceding the date of transfer
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