EMDARAPU KUMARASWAMY,KARIMNAGAR vs. ITO., WARD-11(1), HYDERABAD

ITA 1441/HYD/2025Status: DisposedITAT Hyderabad24 June 2026AY 2022-2311 pages
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What were the facts?

The assessee reported income from salary and other sources but did not offer winnings from online gaming to tax. The Assessing Officer (AO) added gross winnings of Rs. 3,54,44,447/- under Section 115BB, citing that winnings from games are taxable without deduction. The AO also disallowed deductions under Chapter VI-A.

What did the Tribunal hold?

The Tribunal held that the AO erred in taxing gross winnings as the assessee had incurred a net loss from online gaming. For the disallowed deductions, the Tribunal remanded the issue to the AO for verification of tax paid on the revised income.

What were the issues?

Whether gross winnings from online games are taxable when the assessee has incurred a net loss, and whether disallowed deductions can be considered if tax has been paid on revised income.

Which sections of the Income-tax Act were involved?

Section 115BB,Section 58(4),Section 132,Section 139(8A),Section 140B,Section 194B,Section 24(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ Bench, Hyderabad

Before: SHRI VIJAY PAL RAO, HON’BLE & SHRI MANJUNATHA.G, HON’BLE

Hearing: 24.06.2026

PER MANJUNATHA.G, AM:

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre

(NFAC), Delhi, dated 14.07.225, and pertains to assessment year 2022-

23.

Emdarapu Kumaraswamy 2. The brief facts of the case are that the assessee is an individual filed

his return of income (RoI) for AY 2022-23 declaring total income of Rs.15,62,200/- w

The order continues below.

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