Capital Gains characterization upheld: unlisted preference shares treated as capital gains and revision under revisional jurisdiction set aside.

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....Revision under Section 263 failed because the Assessing Officer conducted a prima facie inquiry, considered documentary evidence and followed the binding CBDT Instruction treating transfers of unlisted shares as capital gains; the revisional order was therefore neither erroneous nor prejudicial to revenue. The contention that the assessee converted stock-in-trade into a capital asset lacked antecedent findings and could not be raised first at appeal, so the Tribunal rightly declined to entertain it. On facts-long holding period, single isolated sale, investment-intent recorded by board resolution and accounting consistent with investment-the surplus was held to be long-term capital gains, and all substantial questions were answered for the assessee.....