Ashok Dattatray Mutkule Vs ITO (ITAT Pune)
Pune ITAT: ₹32.61 Lakh Addition for Online Gaming Loss Remanded – Credit Card & Bank Payments Cannot Be Treated as Unexplained Without Verification
In Ashok Dattatray Mutkule v. ITO, the Pune ITAT dealt with an addition of ₹32,61,129 under section 69A arising from transactions on an online gaming portal operated by Gameskraft Technologies Pvt. Ltd. The assessee, an employee of Siemens Healthcare Pvt. Ltd., had incurred a gaming loss of ₹76.60 lakh.
The Assessing Officer called upon the assessee to explain the source of funds used for the gaming transactions. The assessee explained that the payments had been made primarily through Axis Bank, SBI and HDFC credit cards and savings bank accounts. However, the AO accepted the source only to the extent of ₹43.92 lakh and treated the balance ₹32.61 lakh as unexplained money, which was confirmed by the CIT(A).
Before the Tribunal, the assessee produced details showing aggregate payments of ₹80,36,738, comprising Axis Bank credit card ₹20.99 lakh, SBI credit card ₹6.39 lakh, HDFC credit card ₹43.92 lakh and payments from two savings accounts aggregating about ₹9.04 lakh.
The ITAT found that the lower authorities had not examined the Axis Bank credit card, SBI credit card and savings-bank-account transactions. It therefore held that these sources required proper verification rather than being summarily treated as unexplained. The matter was restored to the jurisdictional AO for verification, with a direction to decide it in accordance with law if the details were found correct and to provide the assessee reasonable opportunity of hearing.
FULL TEXT OF THE ORDER OF ITAT PUNE
The captioned appeal at the instance of assessee pertaining to A.Y. 2022-23 is directed against the order dated 11.03.2026 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment order 21.03.2024 passed u/s.143(3) r.w.s.144B of the Act.
