2001 PLP 2512 (PTD)
Master SUMANTH RAMANUJAM and another Versus OMMISSIONER OF INCOME‑TAX
| Citation | 2001 PLP 2512 (PTD) |
| Forum / Court | 248 I T R 816 |
| Bench Members | S.P. Bharucha, N. Santosh Negde and Y.K. Sabharwal, JJ |
| Parties | Master SUMANTH RAMANUJAM and another Versus OMMISSIONER OF INCOME‑TAX |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 2001 PLP 2512 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2001 PLP 2512 (PTD)?
The case was heard and decided by the 248 I T R 816 bench comprising: S.P. Bharucha, N. Santosh Negde and Y.K. Sabharwal, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2001 PLP 2512 (PTD) (Master SUMANTH RAMANUJAM and another Versus OMMISSIONER OF INCOME‑TAX). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- A.T.M. Sampath and V. Balaji, Advocates for the Assessees.
- T.L.V. Iyer, Senior Advocate (B.K. Prasad, Advocate with him) for the Commissioner.
Headnotes / Summary
(Cases referred under section 257 of the Income Tax Act, 1961, by the Income‑tax Appellate Tribunal, Madras Bench 'B'. in R. As. Nos. 1174/Mds. of 1990 and 1175/Mds. of 1990 arising out of I.T.As. Nos. 2330/Mds. of 1986 and 2331/Mds. of 1986). ‑‑‑‑Capital gains‑‑‑Cost of acquisition‑‑‑Shares‑‑‑Bonus shares‑‑‑Transfer of original shares‑‑‑Subsequent issue of bonus shares to be taken into account to reduce cost of acquisition of original shares‑‑‑Indian Income Tax Act, 1961, Ss.45 &
48. Where in relation to original shares held by the assessee in a company, bonus shares are issued by the company, in computing the capital gains arising from the transfer of original shares, the issue of bonus shares should be taken into account for the purpose of averaging and reducing the cost of acquisition of those original shares. Escorts Farms (Ramgarh) Ltd. v. CIT (1996) 222 ITR 509 (SC) fol. A.T.M. Sampath and V. Balaji, Advocates for the Assessees. T.L.V. Iyer, Senior Advocate (B.K. Prasad, Advocate with him) for the Commissioner.
Judgment & Decree
Where in relation to original shares held by the assessee in a company, bonus shares are issued by the company, in computing the capital gains arising from the transfer of original shares, the issue of bonus shares should be taken into account for the purpose of averaging and reducing the cost of acquisition of those original shares. Escorts Farms (Ramgarh) Ltd. v. CIT (1996) 222 ITR 509 (SC) fol. A.T.M. Sampath and V. Balaji, Advocates for the Assessees. T.L.V. Iyer, Senior Advocate (B.K. Prasad, Advocate with him) for the Commissioner. In view of a conflict of opinion, the following question stands referred to this Court: "Whether, on the facts and in the circumstances of the case, in computing the capital gains arising from the transfer of original shares, the subsequent issue of bonus shares should be taken into account for the purpose of averaging and reducing the cost of acquisition of those original shares?" The question is now covered by the decision of this Court, in Escorts Farms (Ramgarh) Limited v. CIT (1996) 222 ITR
509. Following that decision, the question is answered in the affirmative and in favour of the Revenue. The civil appeal is, accordingly, disposed of. No order as to costs. M.B.A./968/FC Reference answered.