1981 (3) TMI 41

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....o us in relation to the assessee, which is an HUF, relates to the assessment year 1962-63. The question is in the following terms: " Whether, on the facts and in the circumstances of the case, any amount was includible in the assessee-family's total income by reason of its having received rights shares of M/s. Koolaire P. Ltd. ? " This question has arisen because the shares of the HUF were h....

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....ersons personally. The ITO treated the issue of bonus and rights shares as perquisites obtained by the karta of the assessee on behalf of the assessee and hence included a substantial sum in the income of the assessee. In other words, the karta happened to be a director or managing director of some companies, he also received bonus or right shares in respect of shares he was holding on behalf of t....

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....651 and CIT v. Dalmia Investment Co. Ltd. [1964] 52 ITR 567. The bonus or rights shares are not received for nothing. In the case of a director or managing director his personal position qua the company in respect of his shares is no different from that of other shareholders of the company. All ordinary shareholders receiving rights or bonus shares are not treated as having received any income bec....