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)

Assistant Commissioner of Income Tax, Circle-1, Patna, Lok Nayak Bhawan, Dak Bunglow Chauraha vs. Mohamad Israil Cold Storages Private Limited, Ara

The appeal of the revenue is dismissed

ITA 198/PAT/2024[2017-18]Status: DisposedITAT Patna17 Feb 2025AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. No.198/Pat/2024 Assessment Year: 2017-18 Acit, Circle-1, Patna…………...………………...…….………....Appellant Vs. Mohamad Israil Cold Storages Pvt. Ltd............................…..…..... Respondent 33Kh, Chik Toli, Bazar Samiti, Ara Bihar – 802301. [Pan: Aagcm3392N] Appearances By: Shri Ashwani Kr. Singal, Jcit, Appeared On Behalf Of The Appellant. Shri Nishant Maitin, Ca, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 09, 2025 Date Of Pronouncing The Order : January 17, 2025 आदेश / Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Revenue Against The Order Dated 23.11.2023 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. Brief Facts Of The Case Are That The Assessee Filed His Return Of Income For The Assessment Year 2017-18 By Declaring Total Income Of Rs.15,87,600/-. The Case Of The Assessee Was Selected For Complete Scrutiny For Examination Of Cash Deposits Made During The Period Of Demonetization. Accordingly, Notices U/S 142(1) & 143(2) Of The Act Were Issued & The Assessee Responded By Submitting His Itr, Computation Of Income, Audit Report, Bank Statements & Other Supporting Documents Through Itr Portal. Upon Reviewing The Submissions, The Assessing Officer Observed That The During The

Section 115BSection 142(1)Section 250Section 69A

Arvindbhai Punabhai Patel, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

The appeal of the assessee is partly allowed

ITA 1851/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad14 Feb 2025AY 2015-16

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.1851/Ahd/2024 िनधा"रण वष" /Assessment Year : 2015-16 Arvindbhai Punabhai Patel The Ito बनाम/ 306, Mangaljoyt Ward-3(3)(1) V/S. Jodhpur Road, Ahmedabad – 380 015 Jodhpur 4 Rasta S.O., Ahmedabad – 380 015 "थायी लेखा सं./Pan: Aggpp 5322 A (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee By : -None- Revenue By : Shri Prathvi Raj Meena, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 13/02/2025 घोषणा की तारीख /Date Of Pronouncement: 14/02/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal Has Been Filed By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As “Cit(A)”] Dated 23.08.2024, Sustaining The Penalty Of Rs. 30,000/- Imposed Under Section 271(1)(B) Of The Income Tax Act, 1961 [Hereinafter Referred To As “The Act”], For Non- Compliance With Statutory Notices Issued Under Section 142(1) During The Course Of Assessment Proceedings For Assessment Year (Ay) 2015-16. Arvindbhai Punabhai Patel Vs. Ito Asst. Year : 2015-16

For Appellant: -None-For Respondent: Shri Prathvi Raj Meena, CIT-DR
Section 142(1)Section 144Section 148Section 148ASection 271(1)(b)Section 272(1)(b)Section 273B