1987 (3) TMI 138

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... calculating the capital gains the ITO did not take into consideration the cost of the original shares as laid down in the Supreme Court decision in the case of CIT vs. Dalmia Investment Co. Ltd. (1964) 52 ITR 567(SC). The reason for doing so was that the assessee had sold the original shares in the preceding assessment year and the entire cost thereof had been allowed as a deduction in that year.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the value of bonus shares is considered Nil acceding to the working of the ITO the principles laid down by the Supreme Court in the case of CIT vs. B.C. Srinivasa Setty (1981) 21 CTR (SC) 138 : (1981) 128 ITR 294 (SC) should be applied and, therefore, there can be no capital gains of an asset in the acquisition of which no cost at all has been incurred. 5. In our view, this is not a case of a....