Supreme Court of India
Sumanth Ramanujam And Anr. vs Commissioner Of Income-Tax on 13 March, 2001
Equivalent citations: AIR 2002 SC 484, (2001) 167 CTR SC 555, 2001 248 ITR 818 SC, (2002) 9 SCC 603, 2002 TAXLR 236, 2001 118 TAXMAN 257 SC
Bench: S Bharucha, N S Hegde, Y Sabharwal
ORDER
1. 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 share’s, 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 ?”
2. 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.
3. The civil appeal is, accordingly, disposed of.
4. No order as to costs.