DIVYA DINESH ,BENGALURU vs. DCIT, CIRCLE-7(1)(1), BANGALORE

ITA 2194/BANG/2025Status: DisposedITAT Bangalore24 February 2026AY 2019-2020Bench: SHRI WASEEM AHMED (Accountant Member), SHRI KESHAV DUBEY (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that short-term capital loss from STT-paid transactions can be set off against long-term capital gains, irrespective of different tax rates, as per Section 70. It also held that TDS credit must be granted to the beneficiary when the income from a revocable trust is taxed in their hands, even if there are procedural discrepancies in PAN reporting.

What were the facts?

The assessee claimed a set-off of short-term capital loss on STT-paid shares against long-term capital gains. The CPC disallowed this set-off, impacting the calculation of Gross Total Income and the deduction under Section 80G. Separately, the assessee was denied TDS credit on dividend income from a revocable trust because the TDS was reflected under the trust's PAN, not the assessee's.

What were the issues?

Whether short-term capital loss from STT-paid shares can be set off against long-term capital gains taxed at different rates, and whether TDS credit can be denied due to PAN mismatch when income is taxed in the beneficiary's hands.

Which sections of the Income-tax Act were involved?

Section 70,Section 80G,Section 199,Section 61,Section 63

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Income Tax Appellate Tribunal, ‘A’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Appellant: Shri Sudheendra B.R, Advocate
For Respondent: Shri Balusamy N, JCIT
Hearing: 04.02.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

This set of 2 appeal, filed at the instance of the assessee, is directed against the common order of the Learned Commissioner of Income Tax (Appeals), Nashik (hereafter the learned CIT(A), under section 250 of the Income Tax Act, 1963 (hereafter the Act) for A.Ys. 2019-20 & 2021-22 dated 19/06/2025 and 29/08/2025. 2. First, we take up assessee’s appeal in ITA No. 2194/Bang/2025 for the Assessment Year 2019-20

3.

The issue raised by the assessee is that the CPC erred in adjusting the STT suffered short term capital loss for Rs. 16,28,978/- on sale of shares and mutual against the Non STT short

The order continues below.

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