Case Law Details
PCIT Vs Reeta Lakhmani (Calcutta High Court)
The case of PCIT vs. Reeta Lakhmani, heard by the Calcutta High Court, is a significant legal precedent involving the interpretation of Section 263 of the Income Tax Act, 1961. This case addresses the procedural and substantive aspects of the exercise of jurisdiction by the Principal Commissioner of Income Tax (PCIT). The judgment, delivered on a series of appeals, scrutinizes the validity of the PCIT’s actions and the genuineness of transactions under the Income Tax Act.
The appeals were filed by the revenue under Section 260A of the Income Tax Act, challenging the orders of the Income Tax Appellate Tribunal (ITAT) for various assessment years. The primary contention was whether the assessee, Reeta Lakhmani, engaged in dubious share transactions to account for undisclosed income under the guise of Long Term Capital Gain (LTCG) and thus claim exemption under Section 10(38) of the Act.
Questions of Law
The revenue raised three substantial questions of law:
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