https://www.taxtmi.com/caselaws?id=49399 Clarifies the method for determining cost of acquisition of bonus shares where they rank pari passu: the original cost of the existing holding must be apportioned by spreading that cost across the original and bonus shares taken together, producing the taxable profit on subsequent sale; if the original acquisition cost is not ascertainable, the market value of the shares on the date of issue governs. Rejects treating bonus shares as worth their face value or as costing nil, and treats the question as an accounting allocation informed by commercial reality. en-us Fri, 13 Mar 1964 00:00:00 +0530 Sun, 24 Aug 2014 16:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49399 Clarifies the method for determining cost of acquisition of bonus shares where they rank pari passu: the original cost of the existing holding must be apportioned by spreading that cost across the original and bonus shares taken together, producing the taxable profit on subsequent sale; if the original acquisition cost is not ascertainable, the market value of the shares on the date of issue governs. Rejects treating bonus shares as worth their face value or as costing nil, and treats the question as an accounting allocation informed by commercial reality. Case-Laws Income Tax Fri, 13 Mar 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49399