Bonus Shares Not Taxable as Income: Madras High Court

CIT Vs Tangi Facility Solutions Pvt Ltd (Madras High Court) The Revenue filed an appeal before the Madras High Court against the order of the Income Tax Appellate Tribunal (ITAT) dated 03.06.2024 in ITA No.735/Chny/2023 concerning Tangi Facility Solutions Pvt Ltd. The primary issue was whether the bonus shares received by the assessee amounted to taxable income under Sections 2(22)(b) and 56(2)(viia) of the Income Tax Act. The Revenue raised multiple substantial questions of law, arguing that the Tribunal erred in holding that the provisions of Section 2(22)(b) did not apply since the assess...