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TMI Blog1972 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... es to the assessee within the meaning of section 12B(2) - correct method of valuing the cost to a person of the bonus shares is to take the cost of the original shares, spread it over the original shares and the bonus shares collectively and find out the average price of all the shares - instead of being a dealer in shares, the same principle will apply if the assessee is an investor in shares. Ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 12B(2) ?" The assessee is the investor with reference to shares of Maharashtra Sugar Mills Ltd. held by him (hereinafter referred to as "sugar mills"). The assessee received certain bonus shares from the sugar mills. These bonus shares were acquired by him without paying any amount by him. The assessment relates to the assessment year 1960-61. During the relevant previous year, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Tribunal in the appeal preferred by the assessee. The Tribunal held that in computing the capital gains the actual cost to the assessee of the capital asset has to be deducted and that the phrase "actual cost" could not be interpreted as notional or something which the assessee was supposed to have suffered and which could be valued in terms of money. Before the Tribunal, it was urged on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court in the case of Commissioner of Income-tax v. Gold Mohore Investment Co. Ltd., wherein the earlier decision of the Supreme Court in Commissioner of Income-tax v. Dalmia Investment Co. Ltd. was approved. There is no controversy on behalf of the revenue that the method of valuing the capital gains in a case like this is settled in view of the above decision of the Supreme Court. In Gol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down by the Supreme Court in Gold Mohore Investment Co. Ltd.'s case. That being the view of the matter, our answer to the question referred to us is as under : The computation of capital gains made by the assessee upon the sale of 600 bonus shares of the Maharashtra Sugar Mills Ltd. has to be calculated in accordance with the method of valuation laid down by the Supreme Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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