https://www.taxtmi.com/caselaws?id=389152 The Tribunal ruled in favor of the assessee, holding that the fair market value of bonus shares should not be added to income under section 56(2)(vii)(c) of the Income Tax Act, 1961. The Tribunal emphasized that bonus shares do not fall under the purview of anti-abuse measures and do not result in an increase in shareholder wealth. Bonus shares were deemed a capitalization of profit by the issuing company, not taxable as per section 56(2)(vii). The decision clarified that bonus shares do not constitute taxable income and upheld the deletion of the addition made by the Assessing Officer. en-us Fri, 29 Nov 2019 00:00:00 +0530 Mon, 02 Dec 2019 16:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=389152 The Tribunal ruled in favor of the assessee, holding that the fair market value of bonus shares should not be added to income under section 56(2)(vii)(c) of the Income Tax Act, 1961. The Tribunal emphasized that bonus shares do not fall under the purview of anti-abuse measures and do not result in an increase in shareholder wealth. Bonus shares were deemed a capitalization of profit by the issuing company, not taxable as per section 56(2)(vii). The decision clarified that bonus shares do not constitute taxable income and upheld the deletion of the addition made by the Assessing Officer. Case-Laws Income Tax Fri, 29 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=389152