Loss on Sale of Shares on Stock Exchange can be Set Off Against LTCG from sale of Unlisted Shares If STT duly

The Income Tax Appellate Tribunal (ITAT) has ruled that losses incurred from the sale of shares on the stock exchange can be set off against long-term capital gains (LTCG) from the sale of unlisted shares if the Securities Transaction Tax (STT) is duly paid. The case involved the sale of shares where the taxpayer reported LTCG and claimed set-off against the losses. The Assessing Officer initially disallowed the set-off, but ITAT upheld the taxpayer's claim, emphasizing that the STT payment fulfills the condition under Section 10(38) of the Income Tax Act. This decision underscores the importance of adhering to statutory requirements for tax benefits.