Law: Income Tax Act, 1922

Section: 12B

Income-tax Act (XI of 1922)--S. 12-B--Computation of capital gain--Leave to appeal granted to examine the contention that view taken by High Court in Commissioner of Income-tax v. Umar Saigol P L D 1973 Lah. 834 that while computing capital gains the cost of bonus shares was to be taken as the face value of the shares was erroneous. Commissioner of Income-tax, Calcutta v. G.M. Investment Company A I R 1969 SC 1183 quoted. ORDER SAAD SAOOD JAN, J.-- These are 29 petitions for special leave to appeal from the judgment of the Lahore High Court, Lahore, Petitions Nos. 696, 697, 698, 699, 700, 701, 702, 703, 704, 709, 710 and 724 are barred by time. As in all these petitions before us the same question of law arises and the question is of considerable public importance, we condone the delay. 2. The question for consideration is whether while computing capital gains the costs of the bonus shares is to be taken as the face value of the shares. This question has been answered by the High Court in the negative on the basis of an earlier decision of that Court reported as Commissioner of Income-tax v. Umar. Saigol P L D 1973 Lah. 834. 3. In support of this petition it is contended that the view taken by…

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