1997 (2) TMI 21

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....ibunal under section 256(1) of the Income-tax Act, 1961, (hereinafter referred to as "the Act"), has referred the following question of law for our opinion for the year 1979-80 : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the cost of the bonus shares should be taken at 50 per cent of the cost of the original shares for purposes of....

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....eld that the capital gains can be worked out on the difference between the sale price and cost of acquisition, in the light of a decision of the Supreme Court in CIT v. Dalmia Investment Co. Ltd. [1964] 52 ITR 567, applying the said principles laid down by the Supreme Court, the Appellate Assistant Commissioner held that to work out the cost of the shares, the, cost of the bonus share should be de....

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....er of a tax case reference before this court T.C. No. 784 of 1984, (CIT v. G.N. Venkatapathy [1997] 225 ITR 952), and this court in that tax case by a judgment dated June 24, 1996, has upheld tile mode of valuation adopted by the Appellate Tribunal for bonus shares. In other words, this court has held that the value adopted as on January 1, 1964, is an unalterable figure and on that basis, the cos....