SAVARIMUTHU JOHNBOSCO,KRISHNAGIRI V. ITO, WARD-1, HOSUR

ITA 4076/CHNY/2025

AI Insights

The case involves an appeal by Shri Savarimuthu Johnbosco against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which was passed under section 250 of the Income Tax Act, 1961. The appeal was directed against an ex-parte order due to the assessee's non-compliance with multiple notices. The primary issue was the addition of Rs.1,14,58,880 under section 68 read with section 115BBE of the Act, which was attributed to gross winnings from online gaming. The assessee, under the belief of having incurred losses from online gaming, did not participate in the assessment or appellate proceedings. The Tribunal, while deprecating the assessee's nonchalant attitude, decided to restore the matter to the AO for a fresh assessment, emphasizing the need for justice and fair play.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837531 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 29-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. ASWATHY
• Assessee Lawyers: S. SRIDHAR
• Keywords: Bonafide belief

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘डी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी इंटूरȣ रामा राव, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 4076/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2022-23 Shri Savarimuthu Johnbosco, No.154/1 & 153/2B, Mookandapalli Village, Hosur, Krishnagiri – 635 109. PAN: ALLPJ 7896D Vs. The Income Tax Officer, Ward 1, Hosur (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri S. Sridhar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. V. Aswathy, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 18.02.2026 घोषणा कᳱ तारीख/Date of Pronouncement : 19.02.2026 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 04.11.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2022-23. Printed from counselvise.com ITA No.4076/Chny/2025 :- 2 -: 2. At the very outset, we notice that the order of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to three notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis u/s.144 r.w.s. 144B of the Act by making addition of Rs.1,14,58,880/- u/s.68 r.w.s. 115BBE of the Act. 3. The ld.AR submitted that the addition of Rs.1,14,58,88-/- u/s.68 r.w.s.115BBE of the Act was on account of gross winning from online gaming. It was submitted by the Ld.AR that assessee had incurred loss from online gaming of Rs.15,14,882/- which is evident from the letter dated 28.02.2024 of Games Kraft Technologies Pvt. Ltd. (letter of Games Kraft Technologies Pvt. Ltd., was furnished in response to show-cause notice). It was further submitted by the Ld.AR that since assessee was under the bonafide belief that he had incurred loss from online gaming, addition proposed would be dropped and hence, did not take part in the assessment proceedings nor in the course of appellate proceedings. 4. The ld.DR supported the orders of the AO and the FAA. Printed from counselvise.com ITA No.4076/Chny/2025 :- 3 -: 5. We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA were ex-parte, since the assessee did not respond to various notices issued from the office of the AO & FAA. The Ld.AR submitted that assessee was under the bonafide belief that since he had incurred loss from online gaming, the addition proposed will be dropped. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the AO. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.10,000/- (Rupees ten thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.10,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co- operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. Printed from counselvise.com ITA No.4076/Chny/2025 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19th February, 2026 at Chennai. Sd/- Sd/- (इंटूरȣ रामा राव) (INTURI RAMA RAO) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 19th February, 2026 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Salem 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "