https://www.taxtmi.com/caselaws?id=8079 Where rights to subscribe to new shares attached to stock-in-trade are sold, the gain is computed by treating the rights and the underlying shares as part of one commercial unit. The proceeds from the rights sale must be reduced by the depreciation in the value of the existing shares, measured by comparing their cum-right and ex-right values at the time of the rights issue. A separate revenue loss claim based on year-end market rates is not the correct basis, because the relevant values are those immediately before and after the rights issue. en-us Sat, 21 Feb 1970 00:00:00 +0530 Sat, 28 Mar 2009 11:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8079 Where rights to subscribe to new shares attached to stock-in-trade are sold, the gain is computed by treating the rights and the underlying shares as part of one commercial unit. The proceeds from the rights sale must be reduced by the depreciation in the value of the existing shares, measured by comparing their cum-right and ex-right values at the time of the rights issue. A separate revenue loss claim based on year-end market rates is not the correct basis, because the relevant values are those immediately before and after the rights issue. Case-Laws Income Tax Sat, 21 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8079