Allotment of shares is “creation” of shares and not “transfer” of shares

A finer distinction between creation of rights – An allotment of shares is a “creation” of shares and not a “transfer” of shares

Khoday Distilleries vs. CIT (Supreme Court)

Where the department held that on the Company allotting rights and bonus shares to its shareholders in a disproportionate manner, it had made a “gift”, HELD, rejecting the contention that:

(i) An allotment of shares is a “creation” of shares and no

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