Sumanth Ramanujam And Anr. vs Commissioner Of Income-Tax

The Supreme Court addressed a conflict regarding the computation of capital gains from the transfer of original shares, specifically whether subsequent bonus shares should be included in averaging the cost of acquisition. Citing its earlier decision in Escorts Farms (Ramgarh) Limited v. CIT [1996] 222 ITR 509, the Court affirmed that bonus shares must be considered, thereby answering the question in favor of the Revenue. The civil appeal was disposed of without any order as to costs.