Capital Gain ::

Court :
HC

Brief :
Held by the Hon`ble Bench that as per section 55(2) clause (aa) in case assessee becomes entitled to an additional financial asset by virtue of original holding of shares the cost of acquisition of the original shares cannot be spread over for calculating the capital gain.

Citation :
Bharat S.Shah Vs. J.C.I.T.

Capital gain Bharat S.Shah Vs. J.C.I.T. 03/16/2006 (2006) 285 ITR 174 (Mumbai) Case Fact: Whether original cost of shares is to be spread over for the purpose of working out capital gain on sale of triple option convertible debentures acquired by virtue of original holding of shares? Decision: Held by the Hon`ble Bench that as per section 55(2) clause (aa) in case assessee becomes entitled to an additional financial asset by virtue of original holding of shares the cost of acquisition of the original shares cannot be spread over for calculating the capital gain.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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