https://www.taxtmi.com/caselaws?id=442708 The Tribunal upheld the decision of the ld. CIT(A) and dismissed the revenue's appeal, ruling that bonus shares do not attract taxation under section 56(2)(vii)(c) of the Income Tax Act. The Court held that bonus shares do not increase shareholder wealth as the market price of shares decreases proportionally after a bonus issue, maintaining overall wealth. The provisions of section 56(2)(vii)(c) were deemed inapplicable to bonus shares issued out of capitalization of reserves, as they do not alter the profit-making apparatus or increase capital employed. en-us Tue, 05 Sep 2023 00:00:00 +0530 Fri, 08 Sep 2023 09:02:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=442708 The Tribunal upheld the decision of the ld. CIT(A) and dismissed the revenue's appeal, ruling that bonus shares do not attract taxation under section 56(2)(vii)(c) of the Income Tax Act. The Court held that bonus shares do not increase shareholder wealth as the market price of shares decreases proportionally after a bonus issue, maintaining overall wealth. The provisions of section 56(2)(vii)(c) were deemed inapplicable to bonus shares issued out of capitalization of reserves, as they do not alter the profit-making apparatus or increase capital employed. Case-Laws Income Tax Tue, 05 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=442708