https://www.taxtmi.com/caselaws?id=39947 Where bonus shares are issued free of cost, the original cost of the shareholding must be spread over both the original and bonus shares. The bonus shares cannot be treated as separately acquired at face value for computing loss on sale of the original shares, and the closing stock of bonus shares cannot be valued at face value. The correct method is apportionment of the original cost across the total shares after the bonus issue, and profit or loss must be computed on that basis. en-us Thu, 03 Apr 1969 00:00:00 +0530 Wed, 04 Mar 2015 11:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39947 Where bonus shares are issued free of cost, the original cost of the shareholding must be spread over both the original and bonus shares. The bonus shares cannot be treated as separately acquired at face value for computing loss on sale of the original shares, and the closing stock of bonus shares cannot be valued at face value. The correct method is apportionment of the original cost across the total shares after the bonus issue, and profit or loss must be computed on that basis. Case-Laws Income Tax Thu, 03 Apr 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39947