https://www.taxtmi.com/caselaws?id=212899 Bonus shares issued on shares originally acquired with convertible foreign exchange were treated as retaining the character of a foreign exchange asset under Chapter XII-A. The Tribunal read sections 115C, 115E and 115F together and held that there was no material distinction in applying the definition of foreign exchange asset across those provisions. Because the original shares were purchased with convertible foreign exchange, the bonus shares could not be viewed in isolation; the cost of acquisition was spread over the original and bonus shares. The long-term capital gains on transfer of the bonus shares therefore qualified for the concessional tax rate under section 115E. en-us Tue, 28 Feb 2012 00:00:00 +0530 Fri, 27 Apr 2012 18:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212899 Bonus shares issued on shares originally acquired with convertible foreign exchange were treated as retaining the character of a foreign exchange asset under Chapter XII-A. The Tribunal read sections 115C, 115E and 115F together and held that there was no material distinction in applying the definition of foreign exchange asset across those provisions. Because the original shares were purchased with convertible foreign exchange, the bonus shares could not be viewed in isolation; the cost of acquisition was spread over the original and bonus shares. The long-term capital gains on transfer of the bonus shares therefore qualified for the concessional tax rate under section 115E. Case-Laws Income Tax Tue, 28 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212899