https://www.taxtmi.com/caselaws?id=753234 The ITAT Delhi dismissed the revenue's appeal regarding addition under section 56(2)(vii)(c) for bonus shares received by the assessee. The AO had found that the assessee sold only original shares, not bonus shares, but attempted to invoke section 56(2)(vii)(c). The Tribunal held that when bonus shares are issued, no property transfer occurs to shareholders as money remains with the company, and overall shareholder wealth remains unchanged pre and post bonus. Following precedent in SMT ARUNA CHANDHOK case with identical facts, the Tribunal ruled that section 56(2)(vii)(c) provisions do not apply to bonus share situations, rejecting the AO's claim of double benefit to the assessee. en-us Mon, 08 Jan 2024 00:00:00 +0530 Tue, 28 May 2024 18:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753234 The ITAT Delhi dismissed the revenue's appeal regarding addition under section 56(2)(vii)(c) for bonus shares received by the assessee. The AO had found that the assessee sold only original shares, not bonus shares, but attempted to invoke section 56(2)(vii)(c). The Tribunal held that when bonus shares are issued, no property transfer occurs to shareholders as money remains with the company, and overall shareholder wealth remains unchanged pre and post bonus. Following precedent in SMT ARUNA CHANDHOK case with identical facts, the Tribunal ruled that section 56(2)(vii)(c) provisions do not apply to bonus share situations, rejecting the AO's claim of double benefit to the assessee. Case-Laws Income Tax Mon, 08 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753234