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“Section 55(2)(aa)”

Section References (mined)Section 55Section 55(2)(aa)22 judgments

The decision most relied on for Section 55(2)(aa) is CIT v. Delhi Press Patra Prakashan Ltd. (355 ITR 14), cited in 61 judgments on BharatTax.

Leading authorities on Section 55(2)(aa)

CIT v. Delhi Press Patra Prakashan Ltd.
355 ITR 14 · 2013 · High Court
61
citing judgments

For Section 80IA and 80IB deductions, the profits of an eligible industrial undertaking or unit must be computed independently based on its actual profitability and market-rate inter-unit transactions, rather than applying a global profit margin of all the assessee's units.

Avani Exports v. CIT
348 ITR 391 · 2012 · High Court
56
citing judgments

A substantive amendment to tax law can only operate retrospectively if it benefits the assessee; it cannot be applied retrospectively to withdraw a benefit or detrimentally affect assessees, even if their assessments are pending or concluded.

Mather & Platt (India) Ltd. v. CIT
168 ITR 493 · 1987 · High Court
30
citing judgments

Deduction for commission payments cannot be disallowed solely because summons served on commission agents were returned unserved, especially if the agents may have moved addresses years after the transactions.

CIT v. Avani
277 CTR 460 · 2015 · Reported
11
citing judgments

The Supreme Court affirmed the Gujarat High Court's decision that amendments to Section 10(23G) should not operate retrospectively to the detriment of assessees.

Judgments citing Section 55(2)(aa)

Fort Canning Credit Investments Pte. Ltd., Singapore vs. Assistant Commissioner of Income-Tax (International Taxation) - 2(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 2104/MUM/2025[2022-23]Status: DisposedITAT Mumbai27 Jan 2026AY 2022-23

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2022-23 Fort Canning Investments Assistant Commissioner Of Pte. Ltd. Income-Tax (International 260 Orchard Road, #14-02 Taxation) - 2(3)(1) Vs. The Heeren, Singapore, Mumbai Singapore – 238855 (Pan: Aaccf9284G) (Appellant) (Respondent) Assessment Year: 2022-23 Fort Canning Credit Assistant Commissioner Of Investments Pte. Ltd. Income-Tax (International 260 Orchard Road #14-02 Taxation) - 2(3)(1) Vs. The Heeren, Singapore, Mumbai Singapore – 238855 (Pan: Aadcf7866R) (Appellant) (Respondent) Present For: Assessee : Shri Dhanesh Bafna, Ms. Priyanka Agarwala, Ms.Hirali Desai, Ms. Nidhi Agarwal & Shri Yogesh Malpani, Cas Revenue : Shri Satya Pal Kumar, Cit Dr & Shri Krishna Kumar, Sr. Dr Date Of Hearing : 29.10.2025 Date Of Pronouncement : 27.01.2026 Fort Canning Investments Pte. Ltd. & Fort Canning Credit Investments Pte. Ltd. Ay 2022-23

For Appellant: Shri Dhanesh BafnaFor Respondent: Shri Satya Pal Kumar, CIT DR and Shri Krishna Kumar, Sr. DR
Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270A

pari materia to the provisions contained in India-Singapore DTAA. The Coordinate Bench took note of provisions of section 2(42A) and section 55(2)(aa) of the Act, wherein the right entitlement is considered distinct as compared to the shares in the company. Further, it took note of para

Fort Canning Investments Pte. Ltd., Singapore vs. Assistant Commissioner of Income-Tax (International Taxation) - 2(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 2103/MUM/2025[2022-23]Status: DisposedITAT Mumbai27 Jan 2026AY 2022-23

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2022-23 Fort Canning Investments Assistant Commissioner Of Pte. Ltd. Income-Tax (International 260 Orchard Road, #14-02 Taxation) - 2(3)(1) Vs. The Heeren, Singapore, Mumbai Singapore – 238855 (Pan: Aaccf9284G) (Appellant) (Respondent) Assessment Year: 2022-23 Fort Canning Credit Assistant Commissioner Of Investments Pte. Ltd. Income-Tax (International 260 Orchard Road #14-02 Taxation) - 2(3)(1) Vs. The Heeren, Singapore, Mumbai Singapore – 238855 (Pan: Aadcf7866R) (Appellant) (Respondent) Present For: Assessee : Shri Dhanesh Bafna, Ms. Priyanka Agarwala, Ms.Hirali Desai, Ms. Nidhi Agarwal & Shri Yogesh Malpani, Cas Revenue : Shri Satya Pal Kumar, Cit Dr & Shri Krishna Kumar, Sr. Dr Date Of Hearing : 29.10.2025 Date Of Pronouncement : 27.01.2026 Fort Canning Investments Pte. Ltd. & Fort Canning Credit Investments Pte. Ltd. Ay 2022-23

For Appellant: Shri Dhanesh BafnaFor Respondent: Shri Satya Pal Kumar, CIT DR and Shri Krishna Kumar, Sr. DR
Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270A

pari materia to the provisions contained in India-Singapore DTAA. The Coordinate Bench took note of provisions of section 2(42A) and section 55(2)(aa) of the Act, wherein the right entitlement is considered distinct as compared to the shares in the company. Further, it took note of para

Inder Jaisinghani, Mumbai vs. Deputy Commissioner of Income Tax Central Circle -5(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 974/MUM/2025[2020-21]Status: DisposedITAT Mumbai31 Oct 2025AY 2020-21

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

For Appellant: Shri Rajan Vora and Shri Pranay Gandhi, CAsFor Respondent: Shri R A Dhyani, CIT DR
Section 139(1)Section 143(3)Section 244ASection 55(2)(aa)Section 55(2)(ac)

shares as on 31 January 2018in light of provision of Explanation a(i) Section 55(2)(ac); Without prejudice, provisions of section 55(2)(aa)(ilia) of the Act cannot be imported into the provisions of section 55(2)(ac) of the Act: 4. without prejudice to the above, failed ... appreciate that the provisions of section 55(2)(aa)(iiia) of the Act providing for cost of acquisition of bonus shares to be Nil cannot be imported into the provisions of section 55(2)(ac) of the Act and it has to be considered as per grand-fathering provisions

Ramesh Jaisinghani, Mumbai vs. Deputy Commissioner of Income Tax Central Circle -5(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 980/MUM/2025[2020-21]Status: DisposedITAT Mumbai10 Oct 2025AY 2020-21

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)Section 244ASection 50(2)(ec)Section 55(2)(aa)Section 55(2)(ac)Section 55(2)(as)Section 56(2)(ac)

shares as on 31 January 2018in light of provision of Explanation a(i) Section 55(2)(ac) Without prejudice, provisions of section 55(2)(aa)(iia) of the Act cannot be imported into the provisions of section 55(2)(ac) of the Act: 4. without prejudice to the above, failed ... appreciate that the provisions of section 55(2)(aa)(iiia) of the Act providing for cost of acquisition of bonus shares to be Nil cannot be imported into the provisions of section 55(2)(ac) of the Act and it has to be considered as per grand-fathering provisions

Vanguard Total International Stock Index Fund, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation)-4(3)(1), Mumbai

ITA 1283/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 May 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

Section 143(2)Section 143(3)

right to subscribe to any financial asset which is renounced in favour of any other person from the date of offer. • Similarly, Section 55(2)(aa) of the Act deals with a scenario where the person becomes entitled to subscribe to additional financial asset and if such entitlement

Vanguard Total World Stock Index Fund, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation)-4(3)(1), Mumbai

ITA 1281/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 May 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

Section 143(2)Section 143(3)

right to subscribe to any financial asset which is renounced in favour of any other person from the date of offer. • Similarly, Section 55(2)(aa) of the Act deals with a scenario where the person becomes entitled to subscribe to additional financial asset and if such entitlement

Vanguard Funds Public Limited Company Vang Ftse Emerging Mkts Ucits Etf, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation)-4(3)(1), Mumbai

ITA 1280/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 May 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm Ι.Τ.Α. No. 1277/Mum/2025 (Assessment Year: 2022-23) Vanguard Emerging Markets Stock Index Fund A Series Of Visplc, C/O Ernst & Young Llp, 14Th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai-400028. Pan: Aaccv3136B Appellant) Vs. Acit (It)-4(3)(1), Kautilya Bhavan, G Block, Bandra Kurla Complex, Maharashtra-400051. : Respondent) Ι.Τ.Α. No. 1278/Mum/2025 (Assessment Year: 2022-23) Vftc- Institutional Total International Stock Market Index Trust Ii, C/O Ernst & Young Llp, 14Th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai-400028. Pan: Aadtv1640C Acit (It)-4(3)(1), Kautilya Bhavan, G Block, Bandra Kurla Complex, Vs. Maharashtra-400051. Appellant) : Respondent) Ι.Τ.Α. No. 1279/Mum/2025 (Assessment Year: 2022-23) Vanguard Emerging Markets Stock Index Fund A Series Of Vieif, C/O Ernst & Young Llp, 14Th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai-400028. Vs. Acit (It)-4(3)(1), Kautilya Bhavan, G Block, Bandra Kurla Complex, Maharashtra-400051. Pan: Aaaty0918K Appellant) : Respondent) 2

Section 143(2)Section 143(3)

IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE MS PADMAVATHY S, AM & SHRI RAHUL CHAUDHARY, JM Ι.Τ

Vanguard Emerging Markets Stock Index Fund A Series of Vief, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation)-4(3)(1), Mumbai

ITA 1279/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 May 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

Section 143(3)

right to subscribe to any financial asset which is renounced in favour of any other person from the date of offer.  Similarly, Section 55(2)(aa) of the Act deals with a scenario where the person becomes entitled to subscribe to additional financial asset and if such entitlement

Vftc Institutional Total International Stock Market Index Trust II, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation)-4(3)(1), Mumbai

ITA 1278/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 May 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

Section 143(2)Section 143(3)

right to subscribe to any financial asset which is renounced in favour of any other person from the date of offer. • Similarly, Section 55(2)(aa) of the Act deals with a scenario where the person becomes entitled to subscribe to additional financial asset and if such entitlement

Vanguard Emerging Markets Stock Index Fund A Series of vs. Plc, Mumbaivs.Assistant Commissioner of Income Tax International Taxation -4(3)(1), Mumbai

ITA 1277/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 May 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

Section 143(3)

right to subscribe to any financial asset which is renounced in favour of any other person from the date of offer.  Similarly, Section 55(2)(aa) of the Act deals with a scenario where the person becomes entitled to subscribe to additional financial asset and if such entitlement

Vanguard Emerging Markets Stock Index Fund A Series of Visplc, Mumbai vs. ACIT (International Tax)-4(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 4657/MUM/2023[2021-22]Status: DisposedITAT Mumbai18 Mar 2025AY 2021-22

Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)

Section 144C(13)Section 144C(5)Section 90

right to subscribe to any financial asset which is renounced in favour of any other person from the date of offer.  Similarly, Section 55(2)(aa) of the Act deals with a scenario where the person becomes entitled to subscribe to additional financial asset and if such entitlement

Praveen Ranjan Sinha, Gurgaon vs. DCIT, Circle-3(1), Gurgaon

In the result, the appeal of the assessee is allowed and Stay Application of the assessee is dismissed as infructuous

ITA 399/DEL/2024[2015-16]Status: DisposedITAT Delhi08 Jul 2024AY 2015-16

Bench: Shri Kul Bharat & Shri M. Balaganeshpraveen Ranjan Sinha, Vs. Dcit, Icb 141, The Icon, Dlf Circle-3(1), City, Phase-V, Gurgaon, Gurgaon Haryana (Appellant) (Respondent) Pan: Ardps3000N Sa No. 57/Del/2024 (In Ita No. 399/Del/2024) (Assessment Year: 2015-16) Praveen Ranjan Sinha, Vs. Dcit, Icb 141, The Icon, Dlf Circle-3(1), City, Phase-V, Gurgaon, Gurgaon Haryana (Appellant) (Respondent) Pan: Ardps3000N Assessee By : Shri Sudesh Garg, Adv Ms. Bhavya Garg, Adv Revenue By: Shri Dharambir Singh, Cit Dr Date Of Hearing 08/04/2024 Date Of Pronouncement 08/07/2024

For Appellant: Shri Sudesh Garg, AdvFor Respondent: Shri Dharambir Singh, CIT DR
Section 143(3)Section 145Section 2Section 250Section 55(2)(aa)Section 94(8)

with regard to the valuation of the bonus share is applicable to the case of the appellant notwithstanding the subsequent amendment in the section 55(2)(aa) (B) (iiia) as well as section 2(42A)(f) of Income Tax Act and the CBDT Circular No. 717 dated ... converting capital asset into stock in trade and then valuing the same in gross violation of provision of section 145/145A as well as section 55(2)(aa) (B) (iiia) and section 2(42A)(f) of the Act and the CBDT Circular in this regard

DCIT, CC -1(4), Mumbai vs. M/S. Hindalco Industries Ltd., Mumbai

Accordingly, there is no substance raised by the department and the same is dismissed

ITA 619/KOL/2007[2003-04]Status: DisposedITAT Mumbai04 Jul 2024AY 2003-04
Section 115JSection 143(3)Section 80Section 80I

income tax law, short term capital loss was reported to the tune of Rs. 22,90,54,766/-. This loss was as per section 55(2)(aa) which provides that in case of issue of bonus unit, the cost for original units remains the same. The assessee contended that loss ... computed as per section 55(2)(aa). The assessee further contended with respect to bonus plan, provision of section 94(7) as applied by Commissioner is not applicable at all. The correct provision to cure mischief of bonus stripping is section 94(8) came into effect only from

M/S. Hindalco Industries Ltd.(Earlier Known As Indian Aluminium Company Ltd), Mumbai vs. DCIT, CC -1(4) (Earlier Deputy Commissioner of Income Tax Circle-8, Kolkatta), Mumbai

ITA 612/KOL/2007[2003-04]Status: DisposedITAT Mumbai04 Jul 2024AY 2003-04
Section 115JSection 143(3)Section 80Section 80I

income tax law, short term capital loss was reported to the tune of Rs. 22,90,54,766/-. This loss was as per section 55(2)(aa) which provides that in case of issue of bonus unit, the cost for original units remains the same. The assessee contended that loss ... computed as per section 55(2)(aa). The assessee further contended with respect to bonus plan, provision of section 94(7) as applied by Commissioner is not applicable at all. The correct provision to cure mischief of bonus stripping is section 94(8) came into effect only from

DCIT Centralcircle-2(3), Chennai vs. M/S Tangi Fcility Solutions Pvt. Ltd., Chennai

The appeal stand dismissed

ITA 735/CHNY/2023[2017-18]Status: DisposedITAT Chennai03 Jun 2024AY 2017-18

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./ Ita No.735/Chny/2023 (िनधा*रणवष* / Assessment Year: 2017-18) Dcit M/S. Tangi Facility Solutions Pvt. Ltd. बनाम/ Central Circle-2(3) Old No.42, New No.2, Chennai-34. Luz Avenue, Mylapore, Vs. Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aafct-1408-B (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Appellant By : Mrs. Swapna Nanu Ambath (Cit)- Ld. Dr " थ"कीओरसे/Respondent By : Shri G. Shivakumar (Advocate)-Ld. Ar सुनवाई की तारीख/Date Of Hearing : 18-03-2024 घोषणा की तारीख /Date Of Pronouncement : 03-06-2024

For Appellant: Mrs. Swapna Nanu Ambath (CIT)- Ld. DRFor Respondent: Shri G. Shivakumar (Advocate)-Ld. AR
Section 143(3)Section 147Section 148Section 2(22)(b)Section 56(2)Section 56(2)(viia)

आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी महावीर िसंह

M/S. Zash Traders, Bangalore vs. Assistant Commissioner of Income-Tax, Circle-4(1)(1), Bengaluru

ITA 747/BANG/2023[2020-21]Status: DisposedITAT Bangalore29 Apr 2024AY 2020-21

Bench: Shri Chandra Poojari & Shri Soundararajan K.

For Appellant: Sri Sandeep Huilgol, A.RFor Respondent: Sri Sunil Kumar Agarwal, D.R
Section 250Section 55Section 55(2)(aa)Section 55(2)(ac)Section 55(2)(b)

express legal provisions. 5. That the impugned Order is erroneous in as much as it has failed to read that the provisions of Section 55(2)(aa) with all its sub-clauses have been made subject to the provisions of Section 55(2)(b)(i) of the Act, and thus ... failed to appreciate that the judicial decisions cited by the authorities below hold no relevance at all post insertion of clause (iiia) in Section 55(2)(aa) of the Act vide the Finance Act, 1995 w.e.f 1-4-1996 and at the same time tite authorities below have omitted

ACIT Circle 16(1), Delhi vs. Kul Prakash Chandok, Delhi

In the result, we do not

ITA 1921/DEL/2021[2015-16]Status: DisposedITAT Delhi08 Jan 2024AY 2015-16

Bench: Shri N.K. Billaiya & Shri Yogesh Kumar Us

Section 55(2)(aa)Section 56(2)(vii)

sale of bonus shares as and when it happens because cost of acquisition of bonus shares is nil as per the provisions of section 55(2)(aa)(i) of the Income Tax Act. 9.13 The AO also erred in concluding that the provisions of section 55(2)(aa ... recognize the fact that had the legislature intended so, the exclusion would have been provided for non applicability of the provisions of section 55(2)(aa)(i) with respect to Issuance of bonus shares to the transactions referred in section 56(2) of the Act. The AO himself accepted

DCIT Circle - 16(1), New Delhi vs. Aruna Chandhok, New Delhi

In the result, we do not find any merit in this appeal, the same fails and is hereby dismissed

ITA 387/DEL/2021[2015-16]Status: DisposedITAT Delhi05 Sept 2023AY 2015-16

Bench: Shri M. Balaganesh & Shri Anubhav Sharmadcit, Vs. Smt Aruna Chandhok, Circle-16(1), H-30, Sainik Farms, New Delhi Delhi-110062 (Appellant) (Respondent) Pan: Aaepc7861R

For Appellant: Sh. Pradeep Dinodia, CAFor Respondent: Shri P. Praveen Sidharth, CIT DR
Section 143(3)Section 55(2)(aa)Section 56(2)(vii)

shares would not be income at all. It was also submitted that cost of bonus shares would be Rs Nil in terms of section 55(2)(aa)(i) of the Act. 5. The ld. CIT(A) duly distinguished the various case laws relied upon by the ld. AO. We find ... sale of bonus shares as and when it happens because cost of acquisition of bonus shares is nil as per the provisions of section 55(2)(aa)(i) of the Income Tax Act. Smt Aruna Chandhok 9.13 The AO also erred in concluding that the provisions of section 55(2

Jm Financial Ltd, Mumbai vs. DCIT 4(3), Mumbai

The appeal of the assessee is allowed and the appeal of the revenue is dismissed

ITA 3987/MUM/2015[2008-09]Status: DisposedITAT Mumbai04 Aug 2023AY 2008-09

Bench: Shri Aby T Varkey () & Ms. Padmavathy S. ()

Section 143(3)

short term short term capital loss of Rs.465,44, 19.508/- be accepted as a genuine short term capital loss. Ground III; Applicability of Section 55(2)(aa) for calculating the amount of Long-term capital loss and Short-term capital loss on sale of shares of JM Financial Products ... case, the Appellant prays that the conclusion reached by the learned C1T (A) on the non-applicability of the provisions of Section 55(2)(aa) of the Income-tax Act, 1961 to the shares of a private limited company is not correct and that such loss is determined by spreading

DCIT 4(3)(1), Mumbai vs. J.M. Financial Ltd, Mumbai

The appeal of the assessee is allowed and the appeal of the revenue is dismissed

ITA 3925/MUM/2015[2008-09]Status: DisposedITAT Mumbai04 Aug 2023AY 2008-09

Bench: Shri Aby T Varkey () & Ms. Padmavathy S. ()

Section 143(3)

short term short term capital loss of Rs.465,44, 19.508/- be accepted as a genuine short term capital loss. Ground III; Applicability of Section 55(2)(aa) for calculating the amount of Long-term capital loss and Short-term capital loss on sale of shares of JM Financial Products ... case, the Appellant prays that the conclusion reached by the learned C1T (A) on the non-applicability of the provisions of Section 55(2)(aa) of the Income-tax Act, 1961 to the shares of a private limited company is not correct and that such loss is determined by spreading