LOGESWARAN SRINIVASAN,NAMAKKAL vs. ITO WARD 1 SALEM, SALEM

At the threshold, we observe that there is a delay of 81 days in the filing of the present appeal by the assessee. The assessee has furnished an

Brief facts of the case are that the assessee is an individual and has filed his return of income on 28.09.2022 for AY 2022-23, declaring total income of Rs.4,68,310/-. The case was selected under CASS for the reasons of winning of players from gaming on portal managed by M/s.Gameskraft Technologies Private Limited for value of Rs.1,76,20,255/-, accordingly statutory notices were issued to the assessee and by calling for details. In response, the assessee submitted the reply along with its supporting documents for verification. On perusal of the information available with the department, ITR and the documents submitted by the assessee, the AO found that the assessee had played certain games on the Gameskraft Portal and had earned gross winnings of Rs.1,76,20,255/- during the relevant year Since, the assessee did not offer this income in his ITR for the AY 2022-23, the AO completed the assessment by passing an order u/s.143(3) r.w.s 144B of the Act dated 21.03.2024 by making an addition of Rs.1,76,20,255/- as ‘Income from Other Sources’ u/s.115BBE of the Act and by arriving total income of Rs.1,80,88,565/-.

Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A) on 20.04.2024.

At the outset, we observed that ld.CIT(A) has provided four opportunities to the assessee to appear for hearings as detailed in paragraph 4 of the ld.CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld.CIT(A), NFAC dismissed the appeal filed by the assessee in limine by confirming the order of the AO by passing an order dated 05.08.2025. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us.

The ld.AR submitted that the ld.CIT(A) has passed order by dismissing the appeal of the assessee in limine due to non-participation of the assessee in the appellate proceedings. The Assessing Officer also has passed the assessment order without consideration of the documents filed by the assessee. In view of the above, the ld.AR prayed that the Tribunal may be pleased to set aside the order of ld.CIT(A) and remit the issues to the file of AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.

Per contra, the ld.DR submitted that the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).

We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an order by considering the submission made by the assessee and the information available with the department and the same has been confirmed by the ld.CIT(A), NFAC due to non-participation of the assessee.

Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh on merits in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.

In the result, appeal filed by the assessee is allowed for statistical purposes.