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TMI Blog1968 (1) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. The majority judgment in this case stated that the bonus shares should be valued by spreading the cost of the ordinary shares over the old shares and the new issues taken together if they rank pari passu, and if they do not, the price may have to be adjusted either in proportion of the face value they bear, or on equitable considerations based on the market price before and after issue. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,00,000. He, therefore, arrived at the result that there was a capital loss of Rs. 3,81,176. The department treated the 8,000 bonus shares as of nil value and arrived at a capital gain of Rs. 4,18,824. That is the point of divergence between the petitioner and the department. Though there were two decisions, one of this court and the other of the Patna High Court, which were in favour of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision will govern the instant case but for the fact that the petitioner, unlike the assessee in Commissioner of Income-tax v. Dalmia Investment Co. Ltd., is no dealer, but an investor. That, in our opinion, makes no difference at all. The point is that the purchase of the ordinary shares for consideration automatically entitled the assessee ipso facto to get the bonus shares and that is the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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