https://www.taxtmi.com/caselaws?id=58583 The Tribunal held that the surplus from the sale of bonus shares is taxable as capital gains. The cost of acquisition for bonus shares should be determined by averaging the cost of the original shares over the total shares held. The decision in B.C. Srinivasa Setty's case regarding assets with no ascertainable cost of acquisition was distinguished as bonus shares have a determinable cost. The Tribunal emphasized the practical differences between bonus shares and goodwill, upholding the method of averaging the cost of original and bonus shares for computing capital gains. The appeals were dismissed, affirming the Commissioner (Appeals) orders. en-us Sun, 30 Jun 1985 00:00:00 +0530 Mon, 20 Dec 2010 17:15:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58583 The Tribunal held that the surplus from the sale of bonus shares is taxable as capital gains. The cost of acquisition for bonus shares should be determined by averaging the cost of the original shares over the total shares held. The decision in B.C. Srinivasa Setty's case regarding assets with no ascertainable cost of acquisition was distinguished as bonus shares have a determinable cost. The Tribunal emphasized the practical differences between bonus shares and goodwill, upholding the method of averaging the cost of original and bonus shares for computing capital gains. The appeals were dismissed, affirming the Commissioner (Appeals) orders. Case-Laws Income Tax Sun, 30 Jun 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58583