https://www.taxtmi.com/caselaws?id=31533 Allotment of rights issue shares to existing shareholders or their nominees was not a gift under the Gift-tax Act because share allotment is creation of shares by appropriation of unappropriated capital, not transfer of existing property; any liability on renunciation would rest with the renouncing shareholder, not the company. Bonus shares were likewise not a gift because they represent capitalisation of accumulated profits, not a distribution of money or property, and no transfer of wealth from the company to the shareholder occurs. On both issues, the gift-tax demand was unsustainable. en-us Fri, 14 Nov 2008 00:00:00 +0530 Mon, 10 Nov 2025 15:13:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=31533 Allotment of rights issue shares to existing shareholders or their nominees was not a gift under the Gift-tax Act because share allotment is creation of shares by appropriation of unappropriated capital, not transfer of existing property; any liability on renunciation would rest with the renouncing shareholder, not the company. Bonus shares were likewise not a gift because they represent capitalisation of accumulated profits, not a distribution of money or property, and no transfer of wealth from the company to the shareholder occurs. On both issues, the gift-tax demand was unsustainable. Case-Laws Income Tax Fri, 14 Nov 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=31533