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)

Sri. Kanala Subramanyam, Bengaluru vs. Income Tax Officer, Ward-5(2)(5), Bangalore

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

ITA 751/BANG/2024[2017-18]Status: DisposedITAT Bangalore03 Jul 2024AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeykanala Subramanyam The Income Tax Officer No. 58/1, 8Th Cross, 12Th Main Ward - 5(2)(5), Bengaluru Raghavendra Block Vs. Srinagar, Bengaluru 560050 Pan – Bryps2091H (Appellant) (Respondent) Assessee By: Shri T. Srinivasa, Ca Revenue By: Shri Subramanian S., Jcit-Dr Date Of Hearing: 25.06.2024 Date Of Pronouncement: 03.07.2024 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/250/2003-24/1062689536(1) Dated 15.03.2024 Passed Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of Assessment Year (Ay) 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - 1. The Impugned Order Passed By The Learned Commissioner Of Income Tax (Appeals) Nfac Is Highly Unjust, Arbitrary & Contrary To Law & The Principles Of Natural Justice. 2. The Learned Commissioner Of Income Tax (Appeals) Nfac Has Failed To Appreciate That The Banking Transaction Of The Appellant During F.Y. 2016-17 Were In The Normal Course Of The Appellant'S Business Activities & That The Cash Deposits To His Bank Account

For Appellant: Shri T. Srinivasa, CAFor Respondent: Shri Subramanian S., JCIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 250Section 69A

Marathi Narayana Sathisha, Bengaluru vs. Income Tax Officer, Ward-3(3)(5), Bengaluru

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

ITA 709/BANG/2024[2017-18]Status: DisposedITAT Bangalore03 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Soundararajan Kassessment Year : 2017-18 Shri. Marathi Narayana Sathisha, Vs. Ito, No.98, 1St Cross, Near White Park Ward – 3(3)(5), Apartments, Kudulu Village, Bengaluru. Bengaluru – 560 068. Pan : Bjsps 3665 K Appellant Respondent Assessee By : Shri. Monish Sowkar, Advocate Revenue By : Shri. Ganesh R Gale, Standing Counsel For Department. Date Of Hearing : 21.05.2024 Date Of Pronouncement : 03.06.2024 O R D E R Per Soundararajan K: This Appeal By The Assessee Is Directed Against The Order Passed By The Nfac Under Section 250 Of The Income Tax Act, 1961 (Hereinafter Called ‘The Act’) Dated 29.11.2023, In Respect Of Assessment Year 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is An Individual & Working As A Physical Instructor In The Cambridge Public School At Bangalore. During The Demonetization Period, The Ao Found That The Assessee Had Deposited Cash Into His Bank Accounts Amounting To Rs.22,53,400/- & Therefore Issued Notices Under Section 143(2) & 142(1) Of The Act For Which The Assessee Had Failed To File Reply. Thereafter, A Show Cause Notice Was Also Issued To The Assessee For Which Also Assessee Page 2 Of 5

For Appellant: Shri. Monish Sowkar, AdvocateFor Respondent: Shri. Ganesh R Gale, Standing Counsel for Department
Section 143(2)Section 144Section 250Section 69A

Anand Immanuel Panchikal, Bangalore vs. DCIT- Circle-6 (1) (1), Bangalore

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

ITA 347/BANG/2024[2017-18]Status: DisposedITAT Bangalore03 Jul 2024AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.Anand Immanuel Panchikal Dcit, Circle 6(1)(1) B3, South Avenue, No. 12 Ii Floor, Bmtc Building 17Th B. Main, 6Th Block Vs. Koramangala 560095 Koramangala 560095 Pan – Abqpp5573J (Appellant) (Respondent) Assessee By: Shri Zain Ahmed Khan, Ca Revenue By: Shri Subramanian S., Jcit-Dr Date Of Hearing: 26.06.2024 Date Of Pronouncement: 04.07.2024 O R D E R Per: Soundararajan K.,J.M. This Appeal Filed By The Assessee Challenges The Order Of The National Faceless Appeal Centre, Delhi (Cit(A)) Dated 29.12.2023 In Respect Of Assessment Year (Ay) 2017-18. 2. The Brief Facts Of The Case Are That The Ld. Assessing Officer (Ao) Rejected The Claim Of The Assessee To Pay Tax U/S. 44Ad Of The Income Tax Act, 1961 (The Act) At 8% On The Ground That The Assessee Is A Commission Agent And, Therefore, As Per Sec. 44Ad(6) Of The Act He Is Not Eligible To Pay Tax U/S. 44Ad. Against The Said Order The Assessee Filed An Appeal Before The Cit(A) & Contended That The Mere Deduction Of Tds By The Payee Would Not Treat The Petitioner As Commission Agent & Therefore Prayed To Set Aside The Order. The Assessee Further Contended That No Show Cause Notice Was Issued By The Ld.

For Appellant: Shri Zain Ahmed Khan, CAFor Respondent: Shri Subramanian S., JCIT-DR
Section 143(2)Section 44A