Section 142(1) of the Income Tax Act

Income-tax Act, 2025: s.268

Section 142(1) falls under section 142 of the Income-tax Act, 1961, which corresponds to section 268 (Inquiry before assessment) of the Income-tax Act, 2025.

Read section 268 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 142(1) is Collector, Land Acquisition v. Mst. Katiji (167 ITR 471), cited in 3,926 of the 17,244 judgments on BharatTax that turn on this section.

Leading authorities on Section 142(1)

Collector, Land Acquisition v. Mst. Katiji
167 ITR 471 · 1987 · Supreme Court
3,926
citing judgments

Delay in filing appeals, when supported by sufficient or justifiable cause, should be condoned with a liberal approach to ensure substantial justice. This principle prioritizes the cause of justice over mere technicalities.

Malabar Industrial Co. Ltd. v. CIT
243 ITR 83 · 2000 · Supreme Court
2,943
citing judgments

For revision under Section 263, the Assessing Officer's order must be both erroneous and prejudicial to the interests of the revenue; if either condition is not met, the revisionary jurisdiction cannot be invoked. An order is not erroneous merely because the Assessing Officer did not record the details of enquiries conducted, provided due enquiries were made.

CIT v. Multiplan India Ltd.
38 ITD 320 · 1991 · ITAT
2,267
citing judgments

An appeal before the Income Tax Appellate Tribunal can be dismissed for non-prosecution or treated as unadmitted when the appellant fails to appear, cooperate, or show diligence, in accordance with Rule 19(2) of the Income-tax (Appellate Tribunal) Rules. The law aids the vigilant, not those who sleep on their rights.

Estate of Late Tukojirao Holkar v. CWT
223 ITR 480 · 1997 · High Court
2,040
citing judgments

A court or tribunal is not bound to answer a reference or adjudicate an appeal on its merits if the party at whose instance the proceeding is made fails to appear at the hearing or take necessary steps for its proper conduct.

Sumati Dayal v. CIT
214 ITR 801 · 1995 · Supreme Court
1,967
citing judgments

The Revenue is entitled to look behind the apparent form of a transaction to discover its true nature, applying the test of human probabilities and surrounding circumstances. If transactions defy logic or are unnatural, they can be treated as bogus, even if supported by some documentation, especially in cases of cash credits or unexplained investments.

Radhasoami Satsang v. CIT
193 ITR 321 · 1992 · Supreme Court
1,695
citing judgments

The principle of consistency applies in tax matters, meaning a fundamental aspect found to be true in one assessment year should not be changed in a subsequent year if the order was not challenged.

CIT v. Kelvinator of India Ltd.
320 ITR 561 · 2010 · Supreme Court
1,673
citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

CIT v. B.N. Bhattacharya & Another
118 ITR 461 · 1997 · Supreme Court
1,656
citing judgments

Appealing a tax assessment requires more than just filing the appeal; it involves actively pursuing it. The assessee must effectively engage with the appellate process.

CIT v. Durga Prasad More
82 ITR 540 · 1971 · Supreme Court
1,579
citing judgments

Tax authorities must judge evidence using the test of human probabilities and consider the apparent as real until there are reasons to believe it is not. They can rely on circumstantial evidence and the preponderance of probabilities to determine the genuineness of transactions.

CIT v. Vatika Township Pvt. Ltd.
367 ITR 466 · 2014 · Supreme Court
1,558
citing judgments

Taxing statutes are presumed to operate prospectively unless a clear contrary intention for retrospective application is evident. The law applicable for determining tax liability is that which stands on the first day of the assessment year, following the principle that law looks forward, not backward (lex prospicit non respicit).

Judgments on Section 142(1)

Khurshid Alam, Bokaro vs. ITO Ward-2(7), Hazaribagh

The appeal of the assessee is allowed for statistical purposes

ITA 496/RAN/2024[2010-11]Status: DisposedITAT Ranchi23 Jun 2025AY 2010-11

Bench: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahayi.T.A. No.496/Ran/2024 Assessment Year: 2010-11 Khurshid Alam.………...................................…...........................……….……Appellant Jhirkey, Kathara, Bokaro, Jharkhand-829116. [Pan: Ahxpa0635P] Vs. Ito, Ward-2(7), Hazaribagh........…..….…..….........……........……...…..…..Respondent Appearances By: Shri M. K. Choudhary, Advocate, Appeared On Behalf Of The Appellant. Shri Khubchand T. Pandya, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : June 19, 2025 Date Of Pronouncing The Order : June 23, 2025 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 29.04.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. At The Outset, The Registry Has Informed That There Is A Delay Of 540 Days In Filing The Present Appeal. The Assessee Filed An Application For Condonation Of Delay Stating Reasons For Such Delay. After Considering The Application, We Find Reasonable Cause & The Delay Was Not Intentional. We, Therefore, Condone The Delay In Filing The Appeal & Adjudicate The Appeal On Merits Of The Case. 3. Brief Facts Of The Case Are That The Assessee Is An Individual & Derived Income From Salary. The Assessee Filed His Return Of Income For The Assessment Year 2010-11 By Declaring Total Income Of Rs.2,38,770/-. The Case Of The Assessee Was Selected For Scrutiny Through Cass Followed

Section 143(2)Section 250Section 250(6)

Vipin Sharma, Giridih vs. ITO, Ward-1(1), Dhanbad

The appeal of the assessee is allowed for statistical purposes

ITA 480/RAN/2024[2017-18]Status: DisposedITAT Ranchi23 Jun 2025AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahayi.T.A. No.480/Ran/2024 Assessment Year: 2017-18 Vipin Sharma………...................................…...........................……….……Appellant Thana Road Suriya Beside Dayal Bhawan, Suriya, Barki Saraiya, Giridih, Jharkhand – 825320. [Pan: Dgjps4695R] Vs. Ito, Ward-1(1), Dhn........…..….…..….........……........……...…..…..Respondent Appearances By: None Appeared On Behalf Of The Appellant. Shri Khubchand T. Pandya, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : June 19, 2025 Date Of Pronouncing The Order : June 23, 2025 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against An Order Dated 25.10.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. No One Has Appeared On Behalf Of The Assessee In Spite Of Serving Notices For Hearing & The Tribunal Cannot Keep This Appeal Pending For Indefinite Time Due To Non-Representation. Therefore, In The Absence Of Any Authorised Representative Of The Assessee, We Proceed To Decide The Appeal With The Assistance Of Ld. Dr & Also Considering The Material Available On Record. 3. Brief Facts Of The Case Are That The Assessee Is An Individual & Has Not Filed Return For The Assessment Year 2017-18. The Assessing Officer Found That The Assessee Had Deposited Cash Amounting To Rs.36,12,900/- During The Relevant Assessment Year Into His Bank

Section 147Section 148Section 250Section 250(6)Section 68

Shaiju Assanarakunju, Kayamkulam vs. Income Tax Officer, Alappuzha

In the result, the appeal filed by the assessee stands allowed

ITA 335/COCH/2025[2017-18]Status: DisposedITAT Cochin23 Jun 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2017-18 Shaiju Assanarakunju .......... Appellant Mukkavala, Kayamkulam, Kayamkulam 690502 [Pan: Abvpa6956F] Vs. The Income Tax Officer, Ward-4, Alappuzha .......... Respondent Appellant By: Shri R. Krishnan, Ca Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 26.05.2025 Date Of Pronouncement: 23.06.2025 O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-1, Vadodara [Cit(A)] Dated 25.03.2025 For Assessment Year (Ay) 2017-18. 2. Brief Facts Of The Case Are That The Appellant Is An Individual Carrying On The Business Of General Merchants. No Regular Return Of Income For Ay 2017-18 Was Filed By The Appellant. However, Based On The Information That The Appellant Made Cash Deposit During Demonetisation Period, The Ao Issued Notice U/S. 142(1) Of The Income Tax Act, 1961 (The Act) Calling Upon The Appellant To File Return Of Income For Ay 2017-18. The Appellant Was Also Issued A 2 Shaiju Assanarakunju Questionnaire Calling For Certain Details. The Appellant Neither Complied With The Notice U/S. 142(1) Nor Furnished The Details. In The Circumstances, The Ao Proceeded With Best Judgement Assessment U/S. 144 Of The Act By Making Addition Of Rs. 3,50,000/- Being Cash Deposit Made During Demonetisation Period, Rejecting The Contention Of The Appellant That The Same Was Made Out Of The Opening Cash Balance As On 08.11.2016 Of Rs. 9,68,192/-.

For Appellant: Shri R. Krishnan, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 142(1)Section 144

The Thudanganad Service Co-Operative Bank Ltd, Thudanganad vs. ITO, Ward 1, Thodupuzha

In the result, the appeal filed by the assessee stands allowed

ITA 332/COCH/2025[2017-18]Status: DisposedITAT Cochin23 Jun 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2017-18 Thudanganad Service Co-Op. Bank Ltd. .......... Appellant Thudanganad P.O., Muttom 685587 [Pan: Aacat5997N] Vs. The Income Tax Officer, Ward-1, Thodupuzha .......... Respondent Appellant By: Shri Arun Raj S., Advocate Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 26.05.2025 Date Of Pronouncement: 23.06.2025 O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-1, Nashik [Cit(A)] Dated 20.03.2025 For Assessment Year (Ay) 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is A Co-Operative Society Registered Under The Kerala State Co-Operative Societies Act, 1969. The Return Of Income For Ay 2017-18 Was Filed On 29.10.2017 Declaring Nil Income. The Ito, Ward 2, Thodupuzha (Hereinafter Called "The Ao") Issued Notices U/S. 143(2) & 142(1) Of The Income Tax Act, 1961 (The Act). In Response To The Notice U/S. 142(1) Dated 09.10.2019, The Assessee Filed Necessary Documents. On Verification Of The Bye Laws & Other Documents It Is Found That The Appellant Is 2 Thudanganad Service Co-Op. Bank Ltd. Engaged In Banking Activity. Against The Said Return Of Income, The Assessment Was Completed By The Ao Vide Order Dated 19.12.2019 Passed U/S. 143(3) Of The Act At A Total Income Of Rs. 14,40,605/-. While Doing So, The Ao Disallowed The Claim For Deduction Of Rs. 14,40,605/- U/S. 80P(2)(D) Of The Act Being Dividend Income Received From Other Co-Operative Societies.

For Appellant: Shri Arun Raj S., AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R
Section 142(1)Section 143(2)Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)