2019 (9) TMI 199

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....f law, for our consideration: "Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in law in holding that the loan given to its subsidiary in India, by the foreign company constitute capital asset within the meaning of section 2(14) of the Income Tax Act?" 3 Briefly, the facts leading to this appeal are as under:- (i) The Respondent has a subsidiary company by the name Siemens Nixdorf Information Systems Limited (SNISL). The Respondent had lent an amount of Rs. 90 lakhs Euros to SNISL under an Agreement dated 21st September, 2000. SNISL ran into serious financial troubles and it was likely to be wound up. In this situation, Respondent sold this debt (Rs. 90 lakhs Euros) to one....

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....of any kind held by an assessee, whether or not connected with his business or profession', except those which are specifically excluded in the said section. It further records the exclusion is only for stock in trade, consumables or raw materials held for purposes of business. It thereafter examined the meaning of the word 'property' to conclude that it has a wide connotation to include interest of any kind. It places reliance upon the decision of this Court in the case of CWT v/s. Vidur V. Patel [1995] 215 ITR 30 rendered in the context of Wealth Tax Act, 1957 which while considering the definition of 'asset' had occasion to construe the meaning of the word 'property' . It held the word 'property' to include interest of every ....

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....e, this appeal deserves admission. 5. We fnd that Section 2(14) of the Act has defned the word 'capital asset' very widely to mean property of any kind. However, it specifcally excludes certain properties from the defnition of 'capital asset'. The Revenue has not been able to point out any of the exclusion clauses being applicable to an advancement of a loan. It is also relevant to note that it is not the case of the Revenue before us that this amount of Rs. 90 lakhs Euros was a loan/ advance income of its trading activity. 6. The impugned order of the Tribunal has considered the meaning of the word 'property' as given in the context of the definition of asset in the Wealth Tax Act to hold 'property' to include the every inter....