https://www.taxtmi.com/caselaws?id=382950 The ITAT Delhi Bench upheld the CIT(A)'s decision to delete the addition made by the A.O. The judgment affirmed that Section 56(2)(vii)(c) of the Income Tax Act does not apply to the issuance of bonus shares. Bonus shares were deemed as a capitalization of profits and not a transfer of property, aligning with legislative intent and established case law. The decision emphasized that bonus shares do not result in an increase in shareholder wealth subject to taxation under Section 56(2)(vii)(c). The appeal by the Revenue was dismissed, supporting the assessee's position. en-us Wed, 10 Jul 2019 00:00:00 +0530 Sat, 13 Jul 2019 08:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=382950 The ITAT Delhi Bench upheld the CIT(A)'s decision to delete the addition made by the A.O. The judgment affirmed that Section 56(2)(vii)(c) of the Income Tax Act does not apply to the issuance of bonus shares. Bonus shares were deemed as a capitalization of profits and not a transfer of property, aligning with legislative intent and established case law. The decision emphasized that bonus shares do not result in an increase in shareholder wealth subject to taxation under Section 56(2)(vii)(c). The appeal by the Revenue was dismissed, supporting the assessee's position. Case-Laws Income Tax Wed, 10 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=382950