TMI Blog2019 (9) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue of 'capital asset' as in this case. Therefore, this appeal deserves admission. Section 2(14) of the Act has defined the word capital asset very widely to mean property of any kind. However, it specifically excludes certain properties from the definition 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 ₹ 90 lakhs Euros was a loan/ advance income of its trading activity. 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 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 31st March, 2016 is in respect of Assessment Year 2002-03. 2. Revenue urges only the following question of 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 ₹ 90 lakhs Euros to SNI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 31st March, 2016 allowed the Respondent s appeal. It examined the definition of capital assets under Section 2(14) of the Act. It held that it defines the term 'capital asset' as 'property 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is inappropriate, as in that case, the Revenue has accepted that the amount due from the un-secured creditor were in the nature of capital assets. Thus, there was no dispute on the issue of 'capital asset' as in this case. Therefore, 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 ₹ 90 lakhs Euros was a loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We are unable to understand this distinction when both the Acts are cognate. However, this submission need not detain us, as this Court had occasion to consider the meaning of the word capital asset as defned in Section 2(14) of the Act in Bafna Charitable Trust v/s. CIT 230 ITR 846. In the above case, this Court observed as under:- Capital asset has been defined in clause (14) of section 2 to mean property of any kind held by an assessee, whether or not connected with his business or profession, except those specifically excluded. The exclusions are stock-in-trade, consumable stores or raw materials held for the business or profession, personal effects, agricultural land and certain bonds. It is clear from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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