{"id":3500,"date":"2011-07-28T16:08:46","date_gmt":"2011-07-28T10:38:46","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=3500"},"modified":"2011-07-28T16:08:46","modified_gmt":"2011-07-28T10:38:46","slug":"sanjay-gala-vs-ito-itat-mumbai-bonus-shares-eligible-for-s-115f-relief-if-original-shares-acquired-in-foreign-currency","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/sanjay-gala-vs-ito-itat-mumbai-bonus-shares-eligible-for-s-115f-relief-if-original-shares-acquired-in-foreign-currency\/","title":{"rendered":"Sanjay Gala vs. ITO (ITAT Mumbai)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=481\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=481&varname2=sanjay_gala_bonus_shares_115F.pdf'; }, 100)\" ><strong>Click here to download the judgement (sanjay_gala_bonus_shares_115F.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nBonus shares eligible for s. 115F relief if original shares acquired in foreign currency<br \/>\n<\/strong><\/p>\n<p>The assessee, a NRI, purchased shares in foreign currency. On the sale of bonus shares, the assessee claimed relief u\/s 115F. The AO &#038; CIT (A) rejected the claim on the ground that s. 115F applied only to shares \u201c<em>acquired or purchased with, or subscribed to in, convertible foreign exchange<\/em>\u201d and not to bonus shares. On appeal by the assessee, HELD allowing the appeal: <\/p>\n<blockquote><p>The department\u2019s objection that the assessee has received bonus shares without investing any convertible foreign exchange is not correct because <strong>as the original shares were acquired by investing convertible foreign exchange, it cannot be said that the bonus shares were acquired without taking into consideration the original shares<\/strong>. In accordance with <strong>Dalmia Investment<\/strong> 52 ITR 567 (SC) the cost of acquisition of the original shares is closely interlinked with the bonus shares. <strong>Once bonus shares are issued, the averaging out formula has to be followed with regard to all shares<\/strong>. Accordingly, bonus shares are covered by s. 115C(b) and eligible for benefit u\/s 115F.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The department\u2019s objection that the assessee has received bonus shares without investing any convertible foreign exchange is not correct because <strong>as the original shares were acquired by investing convertible foreign exchange, it cannot be said that the bonus shares were acquired without taking into consideration the original shares<\/strong>. In accordance with <strong>Dalmia Investment<\/strong> 52 ITR 567 (SC) the cost of acquisition of the original shares is closely interlinked with the bonus shares. <strong>Once bonus shares are issued, the averaging out formula has to be followed with regard to all shares<\/strong>. Accordingly, bonus shares are covered by s. 115C(b) and eligible for benefit u\/s 115F<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/sanjay-gala-vs-ito-itat-mumbai-bonus-shares-eligible-for-s-115f-relief-if-original-shares-acquired-in-foreign-currency\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-3500","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=3500"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3500\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=3500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=3500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=3500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}