Assessee-company sold 34 unlisted preference shares of ICICI Bank acquired in June 2012 and held for nearly six years-Assessing Officer completed assessment under section 143(3) and treated surplus from said shares as Long-Term Capital Gain (LTCG), allowed set-off of brought-forward losses and a loss on disposal of property, plant and equipment. Principal Commissioner invoked section 263 holding assessment erroneous and prejudicial to interests of revenue on grounds including treating shares as stock-in-trade, excess set-off, and disallowable capital loss, noted the absence of elaborate discussion; and set aside the assessment order. It was noted that a notice under section 142(1) was issued, prompting assessee to submit comprehensive evidence such as a Board resolution authorising acquisition as an investment, purchase and sale documents, balance sheet extracts, capital gains computation, and reliance on the CBDT Instruction dated May 02, 2016 Tribunal quashed the revision order. On appeal, the Court held that since AO’s stance aligned with the binding CBDT Instruction dated May 02, 2016, which categorises income from unlisted share transfers as “Capital Gains,” in the absence of specified exceptions, the order was neither erroneous nor prejudicial to revenue, as no revenue loss accrued from a legally tenable position. Order of Tribunal affirmed.(AY. 2018-19)