SRITHER,VIRUDHUNAGAR vs. COMMISSIONER OF INCOME TAX APPEALS, VIRUDHUNAGAR,TAMIL NADU

ITA 328/CHNY/2026Status: DisposedITAT Chennai10 September 2026AY 2022-202313 pages
AI SummaryAllowed

What were the facts?

The assessee reported a net loss from online gaming activities, but the Assessing Officer (AO) added the gross winnings as income. The CIT(A) confirmed the addition, holding that expenditure against winnings is not allowed.

What did the Tribunal hold?

The Tribunal held that only real net winnings from online gaming activities are taxable, not gross wallet credits or intermediate winnings. The AO's addition was deleted as the assessee incurred a net loss.

What were the issues?

Whether gross winnings from online gaming are taxable, or only net winnings after deducting buy-in costs, and if online gaming falls under Section 2(24)(ix).

Which sections of the Income-tax Act were involved?

Section 2(24)(ix),Section 115BB,Section 58(4),Section 115BBJ

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: MS. PADMAVATHY.S & SHRI MANU KUMAR GIRI

For Respondent: Mr. K.Shivalingam, Addl. CIT

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 25.11.2025 for Assessment Year (AY) 2022-23. 2. The assessee is an individual and filed the return of income for AY 2022-23 on 31.07.2022 declaring tot

The order continues below.

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