COMMISSIONER OF INCOME-TAX, CENTRAL CALCUTTA vs GOLD MOHORE, INVESTMENT CO.LTD.

The Supreme Court held that in determining the profit or loss on the sale of bonus shares that rank pari passu with original shares, the cost of the original shares must be spread over all shares, including the bonus shares. This method was upheld against the Income-tax Officer's approach, which calculated profits and losses based solely on the original shares' cost. The Court referred to prior cases such as Dalmia Investment Company Ltd. v. Commissioner of Income-tax, Bihar, establishing the correct valuation method for tax assessments under the Income Tax Act.