TMI Blog1989 (9) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... reference made at the instance of the assessee. They read thus : "(1) Whether, on the facts and in the circumstances of the case, 120 bonus shares issued by the Century Mills Ltd., can be said to be held by the assessee from the date when the original shares in respect of which they are issued were acquired by the assessee or from the date on which the said bonus shares were issued by the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision of the Gujarat High Court in CIT v. Chunilal Khushaldas [1974] 93 ITR 369. This decision squarely covers the point before us and it held that the bonus shares issued by a company are acquired by a shareholder When they are issued and they must be taken to be held by the shareholder from the date of their issue and not from the date when the original shares in respect of which they are i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been taken through the decision of the Gujarat High Court aforementioned and we are, respectfully, in full agreement therewith. It is difficult to see how a bonus share can be said to have been acquired or held by an assessee before the date of the issue. In the result, the first question is answered thus: The 120 bonus shares issued by the Century Mills Ltd. were held by the assessee on and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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