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Commissioner of Income-tax, Uttar Pradesh Vs. Kunji Lal GuptA. (Decd. by Legal Representatives) - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtSupreme Court of India
Decided On
Judge
Reported in[1971]81ITR474(SC)
ActsIncome Tax Act
AppellantCommissioner of Income-tax, Uttar Pradesh
RespondentKunji Lal GuptA. (Decd. by Legal Representatives)
Excerpt:
direct taxation - bonus shares - section 4 of income tax act, 1961 - whether sale proceeds of bonus shares is income taxable under income-tax act - high court held sale proceeds of bonus shares were not income taxable under act of 1961 - apex court in light of precedent laid overruled judgment of high court - held, sale proceeds from bonus shares regarded as income taxable under act of 1961. - section 15: [dr.arijit pasayat & dr.mukundakam sharma,jj] possession of contraband trial of accused - though, there was evidence regarding conscious possession of contraband by accused, no question relating to possession, much less conscious possession was put to accused in examination under section 313 cr.p.c.- held, acquittal of accused by high court is not liable to be interfered with. state..........was, 'whether, on the facts and in the circumstances of this case, the sale proceeds of the bonus shares (received in respect of ordinary shares held by the assessee as a part of his stock-in-trade) is an income taxable under the indian income-tax act ?'2. the high court was of the view that the sale proceeds of the bonus share? were not income taxable under the indian income-tax act. in commissioner of income-tax v. madan gopal radhey lal : [1969]73itr652(sc) , in dealing with a case in which an identical question fell to be determined, this court took a different view and expressly overruled the judgment which is under appeal. the appeal is therefore allowed and the answer to the question will be in the affirmative. having regard, however, to the circumstances there will be no.....
Judgment:

J.C. Shah, J.

1. The question submitted by the Tribunal for the opinion of the High Court of Allahabad was, 'whether, on the facts and in the circumstances of this case, the sale proceeds of the bonus shares (received in respect of ordinary shares held by the assessee as a part of his stock-in-trade) is an income taxable under the Indian Income-tax Act ?'

2. The High Court was of the view that the sale proceeds of the bonus share? were not income taxable under the Indian Income-tax Act. In Commissioner of Income-tax v. Madan Gopal Radhey Lal : [1969]73ITR652(SC) , in dealing with a case in which an identical question fell to be determined, this Court took a different view and expressly overruled the judgment which is under appeal. The appeal is therefore allowed and the answer to the question will be in the affirmative. Having regard, however, to the circumstances there will be no order as to costs.


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