Food supplement classification requires common parlance and authoritative tests, preventing treatment as proprietary Ayurvedic medicines without suppo...
Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
The case involves the interpretation of u/s 55(2)(b)(i) and u/s 55(2)(aa)(B)(iiia) of the Income Tax Act regarding the cost of acquisition of bonus shares. The Tribunal held that the legislative intent of u/s 55(2)(aa)(B)(iiia) is clear - capital gains on transfer of bonus shares should be computed with a cost of nil if conditions are met. The term "allotted" in sub-clause (iiia) refers to past allotment without specifying a date. The Tribunal rejected the argument that sub-clause (iiia) applies only to shares allotted post-1-4-1995. Referring to Dept. Circular No. 717, the Tribunal emphasized the simplicity of computation intended by the amendment. The Tribunal found that u/s 55(2)(b) applies to financial assets where a price is paid, not to bonus shares acquired without payment. Applying u/s 55(2)(b)(i) to bonus shares would render u/s 55(2)(aa)(B)(iiia) redundant. The Tribunal dismissed the appeal, noting the distinction between capital assets and bonus shares.
The case involves the interpretation of u/s 55(2)(b)(i) and u/s 55(2)(aa)(B)(iiia) of the Income Tax Act regarding the cost of acquisition of bonus shares. The Tribunal held that the legislative intent of u/s 55(2)(aa)(B)(iiia) is clear - capital gains on transfer of bonus shares should be computed with a cost of nil if conditions are met. The term "allotted" in sub-clause (iiia) refers to past allotment without specifying a date. The Tribunal rejected the argument that sub-clause (iiia) applies only to shares allotted post-1-4-1995. Referring to Dept. Circular No. 717, the Tribunal emphasized the simplicity of computation intended by the amendment. The Tribunal found that u/s 55(2)(b) applies to financial assets where a price is paid, not to bonus shares acquired without payment. Applying u/s 55(2)(b)(i) to bonus shares would render u/s 55(2)(aa)(B)(iiia) redundant. The Tribunal dismissed the appeal, noting the distinction between capital assets and bonus shares.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4803
Join Channel
TaxTMI 
