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

..... e 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. The ITO relied upon the decision of the Madras High Court in the case of CIT vs. T.V .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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 allowing any deduction. The question before us is of valuation of the bonus shares. In .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X