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)

Panna Lal Prajapati, Mirzapur vs. ITO, Ward 3(2), Mirzapur

In the result, the appeal of the assessee is allowed

ITA 87/ALLD/2024[2011-12]Status: DisposedITAT Allahabad27 Dec 2024AY 2011-12

Bench: Udayan Das Gupta & Sh. Nikhil Choudharya.Y. 2011-12 Shri Panna Lal Prajapati, Vs. Income Tax Officer, Bhudev Dubey, Kai Gali, Ward-3(2), Mirzapur Bhatwa Ki Pokhari, Mirzapur Pan:Azeps1524N (Appellant) (Respondent) Assessee By: Sh. Praveen Godbole, C.A. Revenue By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 01.10.2024 Date Of Pronouncement: 27.12.2024 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Against The Order Of The Ld. Addl Cit(A)-Kolkata Passed Under Section 250 Of The Income Tax Act, 1961 On 27.03.2024. The Grounds Of Appeal Are As Under: “1. That In Any View Of The Matter Assessment Made On Income Of The Rs. 12,73,650/- By Order Dated 26.12.2018 Passed U/S 143 (3)/147 Of The I.T. Act Is Bad Both On The Facts & In Law. 2. That In Any View Of The Matter The Proceeding U/S 147 Of The Act As Initiated On The Allegation That Assessee Has Made Cash Deposit Amounting To Rs.30,63,500/- In Bank Account Which Remain Unexplained Is Not Correct Since The Cash Deposit Are From Disclosed Sources Hence The Satisfaction Recorded Is Not Correct & There Was No Independent Application Of Mind By The Assessing Officer Before Initiating Proceeding U/S 147 Of The Act. 3. That In Any View Of The Matter The Learned Cit Appeal Was Not Correct In Deciding The Appeal Ex-Parte Without Providing Reasonable Opportunity To The Assessee & The Order Not Speaking Order In The Eye Of Law.

For Appellant: Sh. Praveen Godbole, C.AFor Respondent: Sh. A.K. Singh, Sr. DR
Section 142(1)Section 142(2)Section 143Section 147Section 148Section 250Section 44A

Rajesh Kumar, Mirzapur vs. NFAC, Delhi

In the result, the appeal is allowed for statistical purposes

ITA 143/ALLD/2024[2017-18]Status: DisposedITAT Allahabad27 Dec 2024AY 2017-18

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2017-18 Rajesh Kumar, Vs. Nfac, Delhi Tarkapur, Mirzapur-231001 Pan:Aoopk0542B (Appellant) (Respondent) Assessee By: Sh. Praveen Godbole, C.A. Revenue By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 25.10.2024 Date Of Pronouncement: 27.12.2024 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Against The Order Of The Ld. Cit(A), Nfac Under Section 250 Of The Act, 1961 Passed On 7.03.2024. The Grounds Of Appeal Preferred Are As Under:- “1. That In Any View Of The Matter Assessment Made On Income Of Rs.1,53,13,406/ U/S 147 R.W.S. 144B Is Highly Unjustified. 2. That In Any View Of The Matter Proceeding U/S 147 Was Initiated Is Not Correct As There Was No Proper Satisfaction Nor Information With The Assessing Officer That Assessee Has Escaped Assessment Hence The Entire Proceeding Is Bad In Law. 3. That In Any View Of The Matter Addition Of Rs. 1,53, 13,406/- (1,36,16,605/- + 16,96,801/-) As Added Us/ 69A R.W.S. 115Bbe Of The Act By Alleging Unexplained Money By The Assessing As Per Para 8 Of The Assessment Order Is Highly Unjustified. 4. That In Any View Of The Matter The Assessing Officer Was Wrong In Adding Only Credit Entries In Bank Account Without Considering The Debit Entries When The Law Is Settled That Document Should Be Considered As Whole & Not A Piece- Meal Hence The Addition Made Is Highly Unjustified.

For Appellant: Sh. Praveen Godbole, C.AFor Respondent: Sh. A.K. Singh, Sr. DR
Section 142(1)Section 147Section 148Section 234ASection 250

Sushil Kumar Mishra, Allahabad vs. Deputy Commissioner of Income Tax(Circle-1), Allahabad

In the result, the appeal is allowed for statistical purposes

ITA 128/ALLD/2024[2011-12]Status: DisposedITAT Allahabad27 Dec 2024AY 2011-12

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2011-12 Sushil Kumar Mishra, Vs. Deputy Commissioner Of F-6, Lowther Road George Town, Income Tax (Circle-1), Allahabad-211006 Allahabad Pan:Axvpm0472C (Appellant) (Respondent) Assessee By: None Revenue By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 22.10.2024 Date Of Pronouncement: 27.12.2024 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Against The Order Of The Ld. Cit(A), Nfac Passed Under Section 250 Of The Income Tax Act, 1961 Dated 27.06.2024. The Grounds Of Appeal Preferred Are As Under:- “1- That In Any View Of The Matter Order Passed U/S 147/144 Of The Act Dated 10.12.2018 By The Assessing Officer & Confirmed By Cit(A) By Passing Ex- Parte Decision Is Uncalled For & More So Addition Made Are Illegal. The Action U/S 147/148 Of The Act Is Totally Illegal. 2. That In Any View Of The Matter Both The Lower Authorities Decided The Matter Ex-Parte Without Considering The Fact & Without Providing Opportunity To The Assessee Hence The Order Of Two Lower Authorities Liable To Be Cancelled As Illegal In The Fact Of Circumstances Of The Case. 3. That In Any View Of The Matter Cit (Appeal) Is Highly Unjustified In Deciding The Appeal Ex-Parte Without Giving Reasonable Time, Without Service Of Notice & More So No Personal Hearing Was Allowed In This Background Addition As Confirmed By Cit Appeal Is Uncalled For. 1 A.Y. 2011-12 Sushil Kumar Mishra

For Appellant: NoneFor Respondent: Sh. A.K. Singh, Sr. DR
Section 142(1)Section 147Section 148Section 250Section 271(1)(b)

Vijay Singh, Allahabad vs. ITO- 1(5), Allahabad

In the result, the appeal is allowed for statistical purposes

ITA 113/ALLD/2024[2017-18]Status: DisposedITAT Allahabad27 Dec 2024AY 2017-18

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2017-18 Vijay Singh, Vs. Income Tax Officer-1(5), 9R/1, Mln Road, Church Lane, Allahabad Allahabad, U.P. Pan:Azeps1524N (Appellant) (Respondent) Assessee By: Sh. Praveen Godbole, C.A. Revenue By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 22.10.2024 Date Of Pronouncement: 27.12.2024 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Against The Order Of The Ld. Addl Cit(A)-5, Mumbai Dated 14.05.2014, Wherein The Ld. Addl Cit(A), Has Dismissed The Appeal Filed By The Assessee. The Grounds Of Appeal Preferred Are As Under:- “1. That In Any View Of The Matter Assessment Framed U/S 144 Of The Act By Order Dated 13.11.2019 On Income Of Rs.6,45,000/- Is Bad Both On The Facts & In Law. 2. That In Any View Of The Matter Both The Two Lower Authorities Failed To Appreciate The Facts Regarding Cash Deposit In Bank Which Was From Definite Sources Without Providing Reasonable Opportunity To The Assessee Hence Entire Action Is Bad In Law. 3. That In Any View Of The Matter Addition Of Rs.6,45,000/- U/S 69A Of The Act Is Not Correct When The Cash Deposit In Bank Was From Definite Sources & Was The Explained Money But The Issue Was Not Consider Properly By The Assessing Officer As Well As By Cit Appeal Which Action Is Highly Unjustified.

For Appellant: Sh. Praveen Godbole, C.AFor Respondent: Sh. A.K. Singh, Sr. DR
Section 115BSection 142(1)Section 144Section 271ASection 44ASection 69A