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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 ..... assessee has sold the bonus shares allotted to him. The question of law referred to us for our decision is as under : "Whether, for the purposes of computation of capital gains, was the assessee entitled to deduct the face value of the bonus shares from their sale value as the 'actual cost' of those shares to the assessee within the meaning of section 12B(2) ?" The assessee is the investor with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale proceeds of the bonus shares as capital gains made by the assessee by the sale. In view of this finding, he brought to tax the sum of Rs. 1,14,000 under the head "Capital gains". On appeal by the assessee, the Appellate Assistant Commissioner upheld the decision of the Income-tax Officer. That decision was confirmed by the Income-tax Appellate Tribunal in the appeal preferred by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act, expended by the assessee in acquiring the capital asset and not what the assessee was supposed to have suffered. On this finding, the Tribunal took the view that the actual cost of the bonus shares was nil. Mr. Vakil, on behalf of the assessee, has contended that the question involved in this reference is concluded by the decision of the Supreme Court in the case of Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rage price of all the shares. It is not disputed on behalf of the revenue that instead of being a dealer in shares, the same principle will apply if the assessee is an investor in shares. Even in case of an assessee, who was an investor in shares, the capital gain of bonus shares has to be calculated in accordance with the method of valuation laid down by the Supreme Court in Gold Mohore Investme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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