Dismissing the appeal of the revenue the Court held that loan given by assessee to its subsidiary in India by the foreign company constituted capital asset and loss arising on assignment of loan is allowable as capitl loss . Followed Bafna Charitable Trust v CIT (1998) 230 ITR 864 ( Bom) (HC) , CWT Vidur V .Patel (1995) 215 ITR 30 (Bom) (HC) , CIT v. Minor Bababhai Alias Lavkumar Kantilal ( 1981) 128 ITR 1 (Guj) (HC) ( ITA No. 1366 of 2017 dt 26 -08 2019 ) (AY. 2002 -03 )
CIT v. Siemens Nixdorf Information Systemse Gmbh ( 2019) 184 DTR 277 ( Bom) (HC)
S.45: Capital gains- Capital loss- Assignement of loan- Capital asset – Allowable as capital loss. [ S. 2(14)(a) , 2 (47), Wealth tax Act , 1957 S. 2( e ). ]