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1968 (1) TMI 24 - HC - Income TaxWhere bonus shares were issued in respect of ordinary shares held in a company by an assessee who was a dealer in shares, their real cost could not be taken to be nil, or their face value. The majority judgment in this case stated that the bonus shares should be valued by spreading the cost of the ordinary shares over the old shares and the new issues taken together if they rank pari passu, and if they do not, the price may have to be adjusted either in proportion of the face value they bear, or on equitable considerations based on the market price before and after issue. In our opinion, makes no difference it is an investor or dealer.
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