COMMISSIONER OF INCOME TAX Vs. SHASHIKALABEN NAVNITLAL

JUDGEMENT

(1.) IN all these references at the instance of the Revenue, the following common question is referred to us in respect of the assessment year 1983 -84 :

(2.) IT may be stated that in each reference, in the question referred, the number of equity shares of Sarangpur Cotton Mfg. Co. Ltd. is mentioned, but for the sake of convenience and brevity the common question set out above does not include the number of equity shares of the above company.

(3.) THE Tribunal confirmed the order of the Commissioner of Income -tax (Appeals) and held that the cost of the bonus shares is to be determined by the method of average costing along with the original shares if the bonus shares ranked pari pasu and there was no other circumstance to differentiate them. The Tribunal followed its decision in Income -tax Appeals Nos. 678 and 679 of 1987, in respect of the same assessment year.