https://www.taxtmi.com/caselaws?id=99025 The court determined that the holding period for bonus shares starts from the date of their issuance, not from the date of acquisition of the original shares. Bonus shares sold within twelve months of issuance are classified as short-term capital assets. In this case, bonus shares issued on 5th September 1961 and sold on 12th September 1961 were deemed short-term assets. The capital gains tax on the sale of these shares was assessed at rates applicable to ordinary income. The court rejected the assessee's argument that bonus shares should be considered long-term assets. The Tribunal's decision was overturned, and the assessee was directed to pay costs to the Commissioner. en-us Tue, 18 Jul 1972 00:00:00 +0530 Tue, 24 Jan 2012 18:32:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99025 The court determined that the holding period for bonus shares starts from the date of their issuance, not from the date of acquisition of the original shares. Bonus shares sold within twelve months of issuance are classified as short-term capital assets. In this case, bonus shares issued on 5th September 1961 and sold on 12th September 1961 were deemed short-term assets. The capital gains tax on the sale of these shares was assessed at rates applicable to ordinary income. The court rejected the assessee's argument that bonus shares should be considered long-term assets. The Tribunal's decision was overturned, and the assessee was directed to pay costs to the Commissioner. Case-Laws Companies Law Tue, 18 Jul 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99025