ANGAPPAN RAMA SHANKAR,KANCHIPURAM V. ITO, NCW-17(1), CHENNAI

ITA 3248/CHNY/2025

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The case involves Angappan Rama Shankar, who appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), which confirmed the addition of gross winnings from a gaming portal to his income for the Assessment Year 2022-23. The AO had added the entire gross winnings of Rs.99,25,011 from M/s.Gameskraft Technologies P Ltd. as income, rejecting the assessee's claim of losses incurred. The CIT(A) upheld this decision as the assessee did not appear before them. The Tribunal found that the lower authorities did not adequately consider the 'buy-in' amounts and related expenditures in their assessment and remitted the case back to the AO for a detailed examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836174 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Appeal Filed On: 14-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.KAVITHA
• Assessee Lawyers: N. ARJUN RAJ
• Keywords: Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0015ी जॉज\u0018 जॉज\u0018 क े, उपा \u001a\u001b, एवं सु\u0015ी पदमा वती यस, लेखा सद$ क े सम\u001b BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3248/Chny/2025 िनधा \u0018रण वष\u0018 /Assessment Year: 2022-23 Angappan Rama Shankar, G2, Senthrom Flats, 12, Veeramani I Cross Street, Nanmangalam, Kanchipuram – 600 129. PAN: AMXPR 6676G Vs. The Income Tax Officer, Non Corporate Ward-17(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ( की ओर से/ Appellant by : Mr. N. Arjun Raj, Advocate *+थ( की ओर से /Respondent by : Ms. R. Kavitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 21.01.2026 घोषणा की ता रीख /Date of Pronouncement : 11.02.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 30.10.2025 for Assessment Year (AY) 2022-23. 2. The assessee is an individual and filed the return of income for AY 2022-23 on 28.07.2022 declaring total income of Rs.9,58,020/-. The case was selected for scrutiny and the statutory notices were duly served on the Printed from counselvise.com ITA No.3248/Chny/2025 Angappan Rama Shankar :- 2 -: assessee. The AO noticed that during the year under consideration the assessee had gross winnings of Rs.99,25,011 from the gaming portal run by M/s.Gameskraft Technologies P Ltd. The assessee submitted that he has incurred a loss from gaming and submitted a statement showing the loss as below: 3. Based on the report from investigation on the search operation conducted at M/s.Gameskraft Technologies P Ltd., the AO held that the gross winnings should be brought to tax. The AO further held that no loss shall be allowed against winning from lotteries and accordingly added the entire gross receipts as income of the assessee. Aggrieved, the assessee filed further appeal before the CIT(A). Since the assessee did not appear before the CIT(A), the addition was confirmed by the CIT(A) on merits after considering the materials available on record. The assessee is in appeal before the Tribunal against the order of the CIT(A). 4. We heard the parties and perused the material on record. The primary submission of the Ld. AR is that the AO is not correct in adding the gross winnings without considering the \"buy-in\" amounts and related expenditure. On perusal of the order of the order of the CIT(A) we notice that the order has Printed from counselvise.com ITA No.3248/Chny/2025 Angappan Rama Shankar :- 3 -: been passed exparte though the CIT(A) has considered the materials available on record to dismiss the appeal. It is the plea of the Ld. AR that the lower authorities have merely gone by what is mention in the account statement of the assessee as received from M/s.Gameskraft Technologies P. Ltd without providing an opportunity to the assessee to rebut. It is also submitted that the statement considered contains the assessee loss incurred by the assessee which has been completely ignored and only the gross winning from the statement is taken as the income of the assessee. Considering that the lower authorities has passed the order based on the account statement of the assessee received from M/s.Gameskraft Technologies P. Ltd, without examining any other facts unique to online gaming we are of considered we that the assessee should be given one more opportunity to represent the case properly in the interest of natural justice and fair play. Accordingly we remit the appeal back to the AO for a fresh consideration of the impugned issue by calling for necessary details pertaining to the actual winning earned by the assessee from online gaming and decide the issue in accordance with law. The assessee is directed to file the necessary details without seeking unnecessary adjournments and cooperate with assessment proceedings. It is ordered accordingly. 5. In the result, appeal of the assessee is allowed for statistical purposes Order pronounced on 11th day of February, 2026 at Chennai. Sd/- Sd/- (जॉज\u0018 जॉज\u0018 क े) (George George K) उपा \u001a\u001b / Vice President (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 11th February, 2026. EDN, Sr. P.S Printed from counselvise.com ITA No.3248/Chny/2025 Angappan Rama Shankar :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "