STT-paid short-term capital loss can be set off against non-STT STCG: ITAT Mumbai

Teacher Retirement System of Texas Vs ACIT (IT)-4(1)(2) (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai Bench has delivered a significant ruling, allowing the Teacher Retirement System of Texas, a United States-based Foreign Portfolio Investor (FPI), to set off short-term capital losses incurred on transactions subject to Securities Transaction Tax (STT) against short-term capital gains derived from transactions where STT was not paid. The decision, pronounced on May 23, 2025, for the assessment year 2022-23, effectively overturned the earlier stance of the Assessing Officer (AO) and...