TMI Blog1997 (2) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as "the Act"), has referred the following question of law for our opinion for the year 1979-80 : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the cost of the bonus shares should be taken at 50 per cent of the cost of the original shares for purposes of computing capital gains ?" Mr. P. P. S. Janarthana Raja undertakes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale price and cost of acquisition, in the light of a decision of the Supreme Court in CIT v. Dalmia Investment Co. Ltd. [1964] 52 ITR 567, applying the said principles laid down by the Supreme Court, the Appellate Assistant Commissioner held that to work out the cost of the shares, the, cost of the bonus share should be determined by taking into account 50 per cent. of the value of the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . G.N. Venkatapathy [1997] 225 ITR 952), and this court in that tax case by a judgment dated June 24, 1996, has upheld tile mode of valuation adopted by the Appellate Tribunal for bonus shares. In other words, this court has held that the value adopted as on January 1, 1964, is an unalterable figure and on that basis, the cost of bonus shares should be arrived at by spreading over the cost of orig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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