https://www.taxtmi.com/caselaws?id=102375 The High Court held that when bonus shares are issued on shares purchased from the market, the cost of acquisition should be averaged out for computing capital gains. Therefore, the court determined that the cost of acquisition for the shares sold should be computed by averaging the cost of original shares and bonus shares received. The court clarified that this principle applies only when bonus shares are issued on the shares sold, distinguishing the case from a previous decision involving rights shares. As a result, the court answered the referred question in favor of averaging out the cost, disposing of the reference with no order as to costs. en-us Mon, 05 Jul 1993 00:00:00 +0530 Tue, 14 Feb 2012 16:49:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=102375 The High Court held that when bonus shares are issued on shares purchased from the market, the cost of acquisition should be averaged out for computing capital gains. Therefore, the court determined that the cost of acquisition for the shares sold should be computed by averaging the cost of original shares and bonus shares received. The court clarified that this principle applies only when bonus shares are issued on the shares sold, distinguishing the case from a previous decision involving rights shares. As a result, the court answered the referred question in favor of averaging out the cost, disposing of the reference with no order as to costs. Case-Laws Income Tax Mon, 05 Jul 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=102375