https://www.taxtmi.com/caselaws?id=28676 The High Court upheld the Income Tax Officer's decision in a case involving the valuation of bonus shares for computing capital gains. The Court ruled that in the case of compulsory acquisition of all shares, including bonus shares, the total cost should be based solely on the actual cost of the original shares, rejecting the inclusion of notional cost of bonus shares in the computation. The Court emphasized the principle of averaging for specific purposes like closing stock valuation and deemed individual costing of bonus shares unnecessary in the sale of the entire block of shares. en-us Mon, 17 Jan 1983 00:00:00 +0530 Wed, 24 Feb 2010 17:09:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28676 The High Court upheld the Income Tax Officer's decision in a case involving the valuation of bonus shares for computing capital gains. The Court ruled that in the case of compulsory acquisition of all shares, including bonus shares, the total cost should be based solely on the actual cost of the original shares, rejecting the inclusion of notional cost of bonus shares in the computation. The Court emphasized the principle of averaging for specific purposes like closing stock valuation and deemed individual costing of bonus shares unnecessary in the sale of the entire block of shares. Case-Laws Income Tax Mon, 17 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28676