Master Sumanth Ramanujam And Srikanth Ramanujam vs Commissioner Of Income Tax, Madras

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2001 Supreme(SC) 465

2001(6) Supreme 20
SUPREME COURT OF INDIA
S.P. Bharucha, N. Santosh Hegde & Y.K. Sabharwal, JJ.
Master Sumanth Ramanujam & Srikanth Ramanujam -Appellant
versus
Commissioner of Income Tax, Madras -Respondent
Tax Reference Case Nos. 5 and 6 of 1995
Decided on 13-3-2001

Headnote

Income Tax-Capital gains-Computation-Transfer of original shares-Whether subsequent issue of bonus shares should be taken into account for purpose of averaging and reducing the cost of acquisition of those original shares? Yes-Question stood covered by decision in Escorts Farm Ltd. case.

ORDER

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 Farm (Ramgarh) Ltd. v. Commissioner of Income Tax1. Following that decision, the question is answered in the affirmataive and in favour of the Revenue.

The civil appeal is, accordingly, disposed of.

No order as to costs.

Reference answered in favour of Revenue.

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Parallel Citations of other Journals :

Ramanujam v. Commissioner of Income Tax, Madras, 2001(6) Supreme 20

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