Commissioner Of Income-Tax, Bihar vs Dalmia Investment Co. Ltd on 13 March, 1964
4. Learned Senior counsel for the revenue
submitted that the assessee had not paid any
consideration for bonus shares and therefore, he was
under an obligation in law to offer the market value as
income from other sources under Section 56(2)(vii)(c) of
the Act. It is also submitted that the tribunal erred in
relying on the decision of the Supreme Court in DALMIA
INVESTMENT CO. LTD. supra which is not applicable to
the fact situation of the case. It is also contended that
the tribunal erred in law in holding that the assessing
authority is not correct in determining the market value
as per Rule 11A UA of the Income Tax Rules at
Rs.12,49,00,000/- on 1,00,00,000 bonus shares
received by the assessee and bring the same to tax
under the head 'income from other sources' by holding
that Section 56(2)(v) and (vii) of the Act cannot be
invoked by the assessing authority.