https://www.taxtmi.com/caselaws?id=56317 For capital gains on the sale of bonus shares, the valuation must be made by reference to the cost of the original shares, following the Supreme Court principle in Dalmia Investment Co. Ltd. The fact that the original shares had been sold earlier and their cost allowed in a prior assessment year does not alter the basis for computing the gain on the bonus shares. If the earlier allowance was considered wrong, the Department's remedy lay in revision or reassessment, not in changing the valuation method for the present computation. The capital gains computation was therefore required to be redone on that basis. en-us Fri, 20 Mar 1987 00:00:00 +0530 Fri, 03 Dec 2010 10:16:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56317 For capital gains on the sale of bonus shares, the valuation must be made by reference to the cost of the original shares, following the Supreme Court principle in Dalmia Investment Co. Ltd. The fact that the original shares had been sold earlier and their cost allowed in a prior assessment year does not alter the basis for computing the gain on the bonus shares. If the earlier allowance was considered wrong, the Department's remedy lay in revision or reassessment, not in changing the valuation method for the present computation. The capital gains computation was therefore required to be redone on that basis. Case-Laws Income Tax Fri, 20 Mar 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56317