Section 263 Revision Invalid as AO Conducted Proper Inquiry: Calcutta HC Upholds LTCG on Unlisted Shares

PCIT Vs Russel Credit Limited (Calcutta High Court) 1. Core Issue The core issue before the High Court was whether the Principal Commissioner validly exercised revisionary jurisdiction under Section 263 of the Income Tax Act, 1961 by holding that the assessment order was erroneous and prejudicial to the interest of the revenue on the ground that profit arising from sale of 34 unlisted preference shares of ICICI Bank Ltd. was wrongly treated as Long-Term Capital Gain instead of business income, and that there was excess set-off and allowance of disallowable capital loss. The question essentiall...