https://www.taxtmi.com/caselaws?id=20314 The High Court of Gujarat ruled that the cost of acquisition for shares sold should be determined by averaging the cost of original shares with bonus shares received. The court rejected the assessee's argument for using only the actual purchase price and upheld the Revenue's position on the averaging method. Emphasizing the need to consider both types of shares in the cost calculation, the court clarified that bonus shares do impact the cost of acquisition. The decision aligned with precedent and required spreading the cost over both original and bonus shares for accurate capital gains computation. en-us Mon, 05 Jul 1993 00:00:00 +0530 Fri, 13 Nov 2009 12:35:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20314 The High Court of Gujarat ruled that the cost of acquisition for shares sold should be determined by averaging the cost of original shares with bonus shares received. The court rejected the assessee's argument for using only the actual purchase price and upheld the Revenue's position on the averaging method. Emphasizing the need to consider both types of shares in the cost calculation, the court clarified that bonus shares do impact the cost of acquisition. The decision aligned with precedent and required spreading the cost over both original and bonus shares for accurate capital gains computation. Case-Laws Income Tax Mon, 05 Jul 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20314