COMMISSIONER OF INCOME TAX Vs. T.S. SANTHANAM

JUDGEMENT

(1.) THE questions referred to us at the instance of the Revenue are :

(2.) THE assessment year is 1986 -87.

(3.) THAT in fact is the method that was adopted by the assessee, which has been upheld by the CIT and the Tribunal, though the AO had held differently. What has been done by the Tribunal is in accordance with the law laid down by this Court. The bonus shares acquired by the assessee on 3rd March, 1983 have to be valued by averaging the cost of shares held by the assessee as on 1st Jan., 1964, which the assessee had opted to have valued at the market value at Rs. 475.95 and the bonus shares. The capital gain arising to the assessee on the sale of 1,000 shares of Sundaram Finance Ltd. and 2,000 shares of TVS Iyengar and Sons Ltd. during the assessment year, has to be determined by following that method, which in fact, has been done by the Tribunal.