1969 (4) TMI 29

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....This case arises from the judgment and order of the High Court of Calcutta dated August 27, 1963, in Income-tax Reference No. 66 of 1954. The case has been certified to this court under section 66A(1) of the Income-tax Act, 1922. The assessee-company is a dealer in shares. The company maintains its books on the cost basis and values the opening and closing stock at cost. The account year (financ....

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....h the face value of bonus shares Loss to P & L a/c Rs. 41,600 received free of cost (100) shares @ Rs. 100 each Rs. 10,000 ------------------- ------------------- Rs. 71,200 Rs. 71,200 ------------------- ------------------- The Income-tax Officer valued the shares as follows: Dr. Sold Cr. C.S. 100 sh. old 19-1-49 100 sh. old Rs. 19,600 Rs. 61,200 C.S. 100 sh. Bonus Rs. 30,60....

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....t the face value of these shares, namely, Rs. 10,000 ?" The High Court, following its own decision in Income-tax Reference No. 54 of 1950 decided on the same day, held in favour of the assessee. According to the High Court the bonus shares had to be taken to have cost according to their face value. The present appeal is filed against the decision of the High Court as stated above. In Commissione....