https://www.taxtmi.com/caselaws?id=37475 The High Court held that the cost of acquisition of original shares should not be diluted by bonus shares, following the principles in Shekhawati General Traders Ltd. The court emphasized that the cost of acquisition remains unchanged by subsequent events, such as the issuance of bonus shares. Therefore, the court ruled in favor of the assessee, rejecting the averaging method for computing capital gains. The decision emphasized that the cost of acquisition is either the actual cost or market value as of January 1, 1954, and bonus shares do not impact this cost. No costs were awarded. en-us Mon, 18 Dec 1978 00:00:00 +0530 Tue, 30 Mar 2010 10:40:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37475 The High Court held that the cost of acquisition of original shares should not be diluted by bonus shares, following the principles in Shekhawati General Traders Ltd. The court emphasized that the cost of acquisition remains unchanged by subsequent events, such as the issuance of bonus shares. Therefore, the court ruled in favor of the assessee, rejecting the averaging method for computing capital gains. The decision emphasized that the cost of acquisition is either the actual cost or market value as of January 1, 1954, and bonus shares do not impact this cost. No costs were awarded. Case-Laws Income Tax Mon, 18 Dec 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37475