https://www.taxtmi.com/caselaws?id=8475 For capital gains computation on sale of bonus shares, the cost of acquisition is not nil merely because the bonus issue involved no separate payment. The cost of the original shares must be spread over both the original and bonus shares, because the right to receive bonus shares is attached to the original holding. The shareholder's status as an investor, rather than a dealer in shares, does not alter this apportionment principle. On that basis, bonus shares cannot be treated as having nil cost, and the transaction cannot be computed as a capital loss on that footing. en-us Wed, 31 Jan 1968 00:00:00 +0530 Sun, 26 Apr 2009 22:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8475 For capital gains computation on sale of bonus shares, the cost of acquisition is not nil merely because the bonus issue involved no separate payment. The cost of the original shares must be spread over both the original and bonus shares, because the right to receive bonus shares is attached to the original holding. The shareholder's status as an investor, rather than a dealer in shares, does not alter this apportionment principle. On that basis, bonus shares cannot be treated as having nil cost, and the transaction cannot be computed as a capital loss on that footing. Case-Laws Income Tax Wed, 31 Jan 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8475