Set off of loss from Short term Capital Gain

Yes, provided the loss from the HP is of 'STCL' nature or u/h 'IFHP'. LTCL can be set off against LTCG only, and not from STCG...

1. Loss under the head "Income from house property" will be allowed to be set it in the year of loss under any heads of income as per sec 71(3A) to the extent of Rs. 2 lakhs. 
2. So in your case, if there is a loss under the head IHP such loss to the extent of Rs. 2 lakhs can be set it off against Short Term capital gains and there is no bar on such set-off. However, IHP loss should have incurred in the current year and carry forward of IHP loss cannot be set it off against any income. 
Please correct me if the above solution has an alternative view.