https://www.taxtmi.com/caselaws?id=5130 Bonus shares are ordinarily capital in the shareholder's hands, and a dealer in shares does not automatically treat them as stock-in-trade; their character depends on intention and conduct. In the income-tax reference discussed here, the sale proceeds of bonus shares formed part of business income because the Tribunal's factual findings supported that treatment, and those findings could not be assailed in the manner attempted once not challenged under the relevant reference procedure. The principle stated is that bonus shares retain capital character unless clear material shows conversion into trading stock, and unchallenged Tribunal findings of fact are binding in the High Court reference. en-us Fri, 06 Sep 1968 00:00:00 +0530 Thu, 20 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5130 Bonus shares are ordinarily capital in the shareholder's hands, and a dealer in shares does not automatically treat them as stock-in-trade; their character depends on intention and conduct. In the income-tax reference discussed here, the sale proceeds of bonus shares formed part of business income because the Tribunal's factual findings supported that treatment, and those findings could not be assailed in the manner attempted once not challenged under the relevant reference procedure. The principle stated is that bonus shares retain capital character unless clear material shows conversion into trading stock, and unchallenged Tribunal findings of fact are binding in the High Court reference. Case-Laws Income Tax Fri, 06 Sep 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5130