Sumanth Ramanujam and anr. Vs. Commissioner of Income-tax - Court Judgment

SooperKanoon Citationsooperkanoon.com/666381
SubjectDirect Taxation
CourtSupreme Court of India
Decided OnMar-13-2001
Judge S.P. Bharucha,; N. Santosh Hegde and; Y.K. Sabharwal, JJ.
Reported inAIR2002SC484; (2001)167CTR(SC)555; [2001]248ITR818(SC); (2002)9SCC603; 2002TAXLR236; [2001]118TAXMAN257(SC)
ActsIncome-tax Act, 1961 - Sections 45, 48 and 257
AppellantSumanth Ramanujam and anr.
RespondentCommissioner of Income-tax
Appellant Advocate A.T.M. Sampath and; V. Balaji, Advs
Respondent Advocate T.L.V. Iyer, Sr. Adv. and ; B.K. Prasad, Adv.
Excerpt:
- order1. 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]222itr509(sc) . 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.
Judgment:
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]222ITR509(SC) . 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.