1968 (1) TMI 24

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....es. There is no controversy that 4,000 shares of Bangalore Woollen Cotton and Silk Mills Ltd. were purchased by the petitioner for a total consideration of Rs. 15,09,376 though the face value of each share was Rs. 100. Fach of such shares entitled the petitioner by reason of the purchase to two bonus shares so that the petitioner came to own 8,000 bonus shares, each of the face value of Rs. 100. A....

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.... company by an assessee who was a dealer in shares, their real cost could not be taken to be nil, or their face value. The majority judgment in this case stated that the bonus shares should be valued by spreading the cost of the ordinary shares over the old shares and the new issues taken together if they rank pari passu, and if they do not, the price may have to be adjusted either in proportion o....