Sec. 2(14), 2(47) & 45 of Income-tax Act, 1961— Capital gains— Section 2(14) exclusion clause not applicable to advancement of loan.

Facts: "Whether 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 s. 2(14)?"

Held, that s. 2(14) 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, thus, appeal dismissed. - CIT V/s SIEMENS NIXDORF INFORMATION SYSTEMSE GMBH - [2020] 314 CTR 524 (BOM)