2001 INSC 0266
                                    SUPREME COURT OF INDIA

                                           Sumanth Ramanujam

                                                      Vs.

                                      Commissioner of Income-Tax

                        (S.P. Bharucha, N. S. Hegde and Y.K. Sabharwal JJ.)

                                                 13.03.2001

                                                   ORDER

1. In view of a conflict of opinion, the following question stands referred to this court:

        "Whether, on the facts and in the circumstances of the case, in computing the capital
        gains arising from the transfer of original share's, the subsequent issue of bonus
        shares should be taken into account for the purpose of averaging and reducing the cost
        of acquisition of those original shares ?"

2. The question is now covered by the decision of this court in Escorts Farms (Ramgarh)
Limited v. CIT1. Following that decision, the question is answered in the affirmative and in
favour of the Revenue.

3. The civil appeal is, accordingly, disposed of.

4. No order as to costs.

1[1996] 222 ITR 509

1  SpotLaw