2018 (6) TMI 1035

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....reatment of future & options trading's derivative losses of assessee Company as speculation loss under section 73 of the Act. 2) On the facts and in the circumstances of the case the ld. CIT(A)-XIV, Ahmedabad ought to have upheld the order of the Assessing Officer. 3) It is therefore, prayed that the order of the Ld. CIT(A)-XIV, Ahmedabad may be set-a-side and that of the order of the Assessing Officer be restored." 2. When this appeal was called out for hearing learned representatives fairly agree that the issue in appeal is covered, in favour of the assessee, by Hon'ble Calcutta High Court's judgement in the case of Asian Financial Services Ltd. vs. CIT, [(2017) 293 CTR 240 (Cal)] wherein it is held that the loss incurred on accou....

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....does not dilute the binding nature of a judicial precedent. There is also no request from the revenue authorities to keep the matter pending till adjudication on the aforesaid appeal by Hon'ble Supreme Court. 4. As to what should be the view to be taken in these circumstances, i.e. when there are conflicting decisions of Hon'ble Courts above and when we donot have the benefit of the guidance by Hon'ble jurisdictional High Court, we find guidance from the decision of a co-ordinate bench in the case of Tej International Pvt Ltd Vs DCIT [(2000) 69 TTJ 650 (Del)] wherein the coordinate bench has, inter alia, observed as follows:- 6. We have considered the rival submissions and perused the records. It is not in dispute that two High Courts, n....

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....ews, whichever seem more reasonable of one of these High Courts. 7. It may be mentioned that some Benches of the Tribunal have either taken independent view on the issue in this appeal or have later on followed Hon'ble Gauhati High Court, referred to above. However, with the latest judgment of Hon'ble Karnataka High Court in Kwality Biscuits Ltd.'s case (supra) the situation is materially different. In the hierarchical judicial system that we have, better wisdom of the Court below has to yield to higher wisdom of the Court above and, therefore, one a authority higher than this Tribunal has expressed an opinion on that issue, we are no longer at liberty to rely upon earlier decisions of this Tribunal even if we were a party to them. Such ....

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....f law is well established and there is no adopt about that. Hon'ble Supreme Court had, however, some occasion to deviate from this general principle of interpretation of taking statute which can be construed as exception to this general rule. It has been held that the rule of resolving ambiguities in favour of tax payer does not apply to deductions, exemptions and exceptions which are allowable only when plainly authorised. This exception, laid down in Littman v. Barron 1952 (2) AIR 393 and followed by apex Court in Mangalore Chemicals & Fertilizers Ltd. v. Dy. Commr. of CCT [1992] Suppl. (1) SCC 21 and Novopa India Ltd. v. CCE & C 1994 (73) ELT 769 (SC), has been summed up in the words of Lord Lohen, "in case of ambiguity, a taxing statute....