1994 (12) TMI 30

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..... B. P. SARAF J. --- By this reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the assessee, the Income-tax Appellate Tribunal, Bombay Bench 'E', Bombay, has referred the following question of law to us for opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the gains arising out of the sale of b....

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....ppellate Assistant Commissioner of Income-tax. It was contended by the assessee before the Appellate Assistant Commissioner that the capital gains arising out of the sale of bonus shares should not have been included in the total income of the assessee. The Appellate Assistant Commissioner, however, rejected this contention and dismissed the appeal. The assessee filed further appeal before the ....

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....t in CIT v. Dalmia Investment Co. Ltd. [1964] 52 ITR 567 and CIT v. Gold Mohore Investment Co. Ltd. [1969] 74 ITR 62 and of the Bombay High Court in CIT v. Alcock Ashdown and Co. Ltd. [1979] 119 ITR 164. Hence, this reference at the instance of the assessee. We have carefully considered the contention of the assessee and the order of the Tribunal. We have also perused the decision of the Suprem....

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....Gold Mohore Investment Co. Ltd. [1969] 74 ITR 62 (SC)). It is settled by the decision of this court in D. M. Dahanukar v. CIT [1973] 88 ITR 454 that the above method of valuation of bonus share would apply irrespective of the fact whether the assessee is a dealer in shares or an investor. The above legal position was reiterated by this court in W. H. Brady and Co. Ltd. v. CIT [1979] 119 ITR 359....