Divyank Goyal Vs ITO (ITAT Agra)
Online Gaming Turnover Is Not a Jackpot—₹2.63-Crore Payout Against ₹2.94-Crore Buy-In Means Loss, Not Taxable Winnings u/s 115BB
Gaming Data Triggers Scrutiny
The Assessee filed his return declaring total income of ₹15,60,160, including online-gaming income of ₹4,44,717 from a platform operated by Gameskraft Technologies Pvt. Ltd.
The case was selected for scrutiny to verify online-gaming transactions. The AO issued notice u/s 133(6) to Gameskraft seeking complete details of the Assessee’s gaming activity.
Gameskraft reported that the Assessee’s total buy-in was ₹2,94,47,047, comprising ₹1,68,50,007 relating to games lost & ₹1,25,97,040 relating to games won. The total amount received as gross winnings was ₹2,62,68,314.
Thus, when the total buy-in was compared with the total amount received, the Assessee had suffered a net loss of ₹31,78,733.
AO Treats One Column as Income
Instead of considering the gaming account as a whole, the AO selected the figure of ₹1,25,97,040 described as the buy-in amount relating to games where the player won. After reducing the income of ₹4,44,717 already disclosed, he added the balance ₹1,21,53,323 as income from other sources taxable u/s 115BB.
The AO noted that although the Assessee claimed to have enclosed a ledger, the relevant attachment was not uploaded. He consequently inferred that the Assessee had nothing further to establish his case.
