Bonus Share Issuance Not Subject to Section 56(2)(vii)(c): ITAT

DCIT Vs Smt Aruna Chandhok (ITAT Delhi) Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently delivered a significant verdict in the case of DCIT vs. Smt Aruna Chandhok concerning the taxation of bonus shares under Section 56(2)(vii)(c) of the Income Tax Act, 1961. The central question was whether the issuance of bonus shares amounts to a transfer of property attracting taxation. Detailed Analysis: 1. Background of the Case: The case pertains to the assessment year 2015-16 and originates from the order of the Commissioner of Income Tax (Appeals) [CIT(A)] in response to an asses...