ITAT allows set off of short-term capital losses against gains with differential tax rates

Emerging Markets Index Non-Lendable Fund Vs DCIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai bench has ruled in favor of Emerging Markets Index Nonlendable Fund (the appellant), a US-based Foreign Portfolio Investor (FPI) registered with SEBI, regarding a dispute over the set-off of short-term capital losses against capital gains with differential tax rates. The ITAT’s decision, delivered on August 5, 2024, allows the FPI to reduce its taxable income, overturning the assessment made by the Deputy Commissioner of Income Tax and upheld by the Dispute Resolution Panel (DRP). T...