COMMISSIONER OF INCOME TAX vs SAKARLAL BALABHAI & CO.

The Supreme Court addressed appeals concerning the interpretation of Section 256(2) of the Income-tax Act, 1961, regarding the computation of long-term capital gains and the valuation of bonus shares. The Court held that the High Court's rejection of the revenue's applications lacked adequate reasoning and failed to consider the findings of the Appellate Tribunal. Consequently, the Court directed the High Court to reconsider the applications with proper attention to the facts and legal principles involved.