ITAT Mumbai Allows Set-Off of STCL at 15% Against STCG at 30% Tax Rate

East Bridge capital Master Fund I Ltd. Vs DCIT (ITAT Mumbai)

The Income Tax Appellate Tribunal (ITAT), Mumbai, in its order dated July 2023, ruled in favour of the assessee, East Bridge Capital Master Fund I Ltd., regarding the set-off of short-term capital losses (STCLs) against short-term capital gains (STCGs) chargeable at a higher tax rate. The central issue in this appeal related to the method of setting off capital losses incurred from transactions liable to a lower tax rate (15%) against capital gains subject to a higher tax rate (30%).

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