1987 (3) TMI 138 - AT - Income Tax

Summary

The ITAT Ahmedabad-C allowed the appeal of the assessee regarding the taxation of capital gains from the sale of bonus shares. The tribunal held that the cost of the original shares should have been considered in the valuation of the bonus shares, following the Supreme Court decision in CIT vs. Dalmia Investment Co. Ltd. The tribunal emphasized that the deduction given in the preceding year for the original shares was irrelevant to the current valuation. The appeal was allowed in favor of the assessee.