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)

The Muzaffarpur Central Co-Operative Bank Ltd, Muzaffarpur vs. ACIT, Circle-2, Muzaffarpur

In the result, the appeal of the assessee stands dismissed

ITA 224/PAT/2019[2009-10]Status: HeardITAT Patna11 Jul 2024AY 2009-10

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.224/Pat/2019 Assessment Year: 2009-10 The Muzaffarpur Central Co-Operative Bank Ltd....…...……………....Appellant Sadar Hospital Road, Muzaffarpur, Bihar – 842001. [Pan: Aabat7831Q] Vs. Acit, Circle-2, Muzaffarpur….................................................…..…..... Respondent Appearances By: Shri Sanjeev Kr. Anwar, Advocate, Appeared On Behalf Of The Appellant. Shri Sushil Kr. Mishra, Jcit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 28, 2024 Date Of Pronouncing The Order : July 11, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 30.07.2019 Of The Commissioner Of Income (Appeal), Muzzafarpur [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Though The Assessee In This Appeal Has Taken As Many As Six Grounds Of Appeal, However, The Sole Issue Raised By The Assessee In This Appeal Is Relating To The Validity Of The Reopening Of The Assessment. 3. The Brief Facts Of The Case Are That The Assessee Is A Cooperative Bank & Derives Income From Banking Business. The Assessing Officer Noted That The Assessee Had Not Filed Its Return Of Income For The Assessment Year 2009-10 Despite Having Taxable Income. He, Therefore

Section 142(1)Section 147Section 148Section 250Section 36(1)(viia)

Manchaiah Shivalingaiah, Bengaluru vs. Income Tax Officer Ward 1(2)(5), Bengaluru

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 944/BANG/2024[2017-18]Status: DisposedITAT Bangalore11 Jul 2024AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeymanchaiah Shivalingaiah The Income Tax Officer No. 365/Ss, 1St Main, 2Nd Cross Ward - 1(2)(5) 3Rd Phase, Manjunath Nagar Vs. Bmtc Building, 80 Ft. Road Rajajinagar, Bengaluru 560010 Koramangala Pan – Bosps6014P Bengaluru 560095 (Appellant) (Respondent) Assessee By: Shri Likith Patel, M.K., Advocate Revenue By: Shri Ganesh R. Gahle, Standing Counsel Date Of Hearing: 19.05.2024 Date Of Pronouncement: 11.07.2024 O R D E R Per: Keshav Dubey, J.M. This Appeal At The Instance Of The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi / Cit(A) Vide Din & Order No. Itba/Nfac/S/250/2023-24/1062552904(1) Dated 13.03.2024 Passed Under Section 250 Of The Income Tax Act, 1961 (The Act) For Assessment Year (Ay) 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1. On The Fact & Circumstances Of The Case, The Learned Cit(A) Erred In Upholding The Order Of The Assessing Officer, In The Manner In Which He Did. 2. On The Facts & Circumstances Of The Case, The Learned Cit(A) Erred In Providing Sufficient Opportunity To The Appellant To Put Forth The Submissions Of The Appellant.

For Appellant: Shri Likith Patel, M.K., AdvocateFor Respondent: Shri Ganesh R. Gahle, Standing Counsel
Section 143(2)Section 144Section 250Section 69

Bajrang Lal Muhal, Ghaziabad vs. ITO, Ward 2(1)(5), Ghaziabad

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2408/DEL/2023[2012-13]Status: DisposedITAT Delhi11 Jul 2024AY 2012-13

Bench: Shri Shamim Yahyabajrang Lal Muhal, Vs. Ito, Ward 2(1)(5), 973/B, Shalimar Garden Extn. 1, Ghaziabad. Sahibabad, Ghaziabad – 201 005 (Uttar Pradesh). (Pan : Aompm4148M) (Appellant) (Respondent) Assessee By : Shri Deepak Upadhyay, Ca Revenue By : Shri Om Prakash, Sr. Dr Date Of Hearing : 08.07.2024 Date Of Order : 11.07.2024 Order This Appeal By The Assessee Is Directed Against The Order Of The Ld. Cit (Appeals)/National Faceless Appeal Centre (Nfac) Dated 10.06.2023 For The Assessment Year 2012-13. 2. Grounds Of Appeal Taken By The Assessee Read As Under :- “1. The Assessment Order Passed By Ld. Assessing Officer Is Bad In Law. 2. The Assessing Officer (Ao) Has Erred In Making Addition Of Rs.10,19,548/- As Unexplained Investment Without Considering The Fact, Circumstances & Materials Available On Record. 3. Hon’Ble Cit (A) Has Erred In Confirming The Assessment Order Passed By Assessing Officer Without Considering The Fact, Circumstances & Material Available On Record.” 3. At The Outset, It Is Noted That There Is A Delay Of 15 Days In Filing The Appeal. The Delay Is Attributable Due To The Health Problem Of The Legal

For Appellant: Shri Deepak Upadhyay, CAFor Respondent: Shri Om Prakash, Sr. DR
Section 133(6)Section 142(1)Section 144Section 147Section 148Section 234ASection 271(1)(c)Section 69