https://www.taxtmi.com/caselaws?id=8666 In computing capital gains on the sale of bonus shares, the face value of the bonus shares cannot be treated as their actual cost where no separate payment was made for acquisition. The applicable valuation principle requires the cost of the original shares to be spread over both the original and bonus shares, and the average cost method must be applied. On that basis, the assessee could not claim deduction of the bonus shares' face value as cost, and capital gains had to be computed in accordance with the Supreme Court's average cost rule. en-us Thu, 19 Oct 1972 00:00:00 +0530 Wed, 20 May 2009 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8666 In computing capital gains on the sale of bonus shares, the face value of the bonus shares cannot be treated as their actual cost where no separate payment was made for acquisition. The applicable valuation principle requires the cost of the original shares to be spread over both the original and bonus shares, and the average cost method must be applied. On that basis, the assessee could not claim deduction of the bonus shares' face value as cost, and capital gains had to be computed in accordance with the Supreme Court's average cost rule. Case-Laws Income Tax Thu, 19 Oct 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8666