2023 (5) TMI 501 - SCH - Income Tax

Capital asset u/s 2(14) - Scope of the term Asset / property - interest of every kind - whether loan given to its subsidiary in India, by the foreign company constitute capital asset - ITAT and HC has given strong reasons for holding that the concerned transaction would come in the meaning of Section 2(14) of the Income Tax Act - HELD THAT - In any case, the interpretation given by the Tribunal as well as the High Court is only with regard to a particular transaction. As such, we are not inclined to interfere with the impugned order under the extra ordinary jurisdiction of Article 136 of the Constitution of India. SLP dismissed.

Summary

Issues Involved:
The interpretation of Section 2(14) of the Income Tax Act in a specific transaction.

Summary:

Interpretation of Section 2(14) of the Income Tax Act:
The Supreme Court, comprising Hon'ble Mr. Justice B.R. Gavai and Hon'ble Mr. Justice Aravind Kumar, dismissed a special leave petition after finding no merit in it. The Court noted that the Income Tax Appellate Tribunal had provided strong reasons for categorizing the transaction in question under Section 2(14) of the Income Tax Act. This determination was upheld by the Division Bench of the High Court, affirming the correctness of the Tribunal's findings in law. The Court emphasized that the Tribunal and the High Court's interpretation was specific to the particular transaction under consideration. Consequently, the Court declined to intervene in the impugned order under Article 136 of the Constitution of India, leading to the dismissal of the special leave petition. Any pending applications were also disposed of accordingly.