Non-disclosure of Exempt LTCG Doesn’t Cause Revenue Loss: Invalidates Section 263 Proceedings

Karan Jain Vs Union of India And 3 Ors (Guwahati High Court) The case of Karan Jain vs. Union of India delves into the issue of non-disclosure of exempt Long-Term Capital Gains (LTCG) and its impact on revenue loss. The petitioner contested the initiation of proceedings under Section 263 of the Income Tax Act, 1961, arguing against the jurisdiction of the action taken by the respondent. The petitioner, represented by Dr. A. Saraf, challenged the Show Cause Notice and subsequent ex-parte Order issued by the Income Tax Department. The crux of the matter lay in the discrepancy between LTCG shown ...