Deeming provisions prescribed u/s 56(2)(vii) couldn’t be applied on issue of bonus shares
[2021] 124 taxmann.com 241 (Karnataka)
HIGH COURT OF KARNATAKA
Short Overview :
Section 56 of the Income-tax Act, 1961
Income from other sources
Chargeable as (Gift)
Assessment year 2012-13
Whether when there is an issue of bonus shares, money remains with company and nothing comes to shareholders as there is no transfer of property and provisions of section under section 56(2)(vii)(c) are not attracted
Held, yes
Conclusions :
Deeming provisions prescribed u/s 56(2)(vii) couldn’t be applied on issue of bonus shares
When there is an issue of bonus shares, money remains with company and nothing comes to shareholders as there is no transfer of property, and thus, provisions of section 56(2)(vii)(c) are not attracted
When there is an issue of bonus shares, money remains with company and nothing comes to shareholders as there is no transfer of property, and thus, provisions of section 56(2)(vii)(c) are not attracted
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