Summary
- The ITAT Delhi has dismissed Nikhil Sawhney's appeal, ruling that a long-term capital loss of Rs.90,80,571 from STT-paid shares cannot be carried forward under Section 10(38).
- The Tribunal upheld the lower authorities' decision, stating that since the income from these transactions is exempt, the corresponding losses also fall outside total income computation.
- Sawhney's arguments relied on various precedents, but the Tribunal followed the Gujarat High Court's ruling that losses are included in "income" under tax provisions.
- This decision could set a precedent affecting future claims for set-off of losses related to STT-paid securities in similar cases.
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