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)

Kalpesh Vaghasia, Mumbai vs. ITO-32(2)(2), Mumbai

In the result both the appeals are partly allowed for statistical purposes

ITA 215/MUM/2024[2010-11]Status: DisposedITAT Mumbai28 Jun 2024AY 2010-11

Bench: Shri Prashant Maharishi (Am) I.T.A. No. 214/Mum/2024 (A.Y. 2009-10) I.T.A. No. 215/Mum/2024 (A.Y. 2010-11) Kalpesh Vaghasia Vs. Ito-32(2)(2) 7Th Floor, 701, Kings Kautilya Bhavan Apartment, Juhu Tara Mumbai. Road, Mumbai-400 049. Pan : Aaepv7332E (Appellant) (Respondent) Assessee By Shri Prateek Jain Department By Shri R.R. Makwana Date Of Hearing 10.06.2024 Date Of Pronouncement 28.06.2024 O R D E R 1. These Are The Two Appeals Filed By The Assessee For Assessment Year 2009 – 10 & 2010 – 11 Against The Appellate Order Passed By The National Faceless Appeal Centre, Delhi (Learned Cit – A) Dated 17/11/2023 Wherein The Appeal Is Filed By The Assessee Were Disposed Of Ex Party Which Were Filed Against Assessment Order Is Passed Under Section 144 Read With Section 147 Of The Income Tax Act For Both The Years On 27/12/2016. 2. The Brief Facts Of The Case For Assessment Year 2009 – 10 Shows That The Assessee Has Not Filed Any Return Of Income. Subsequently The Information Was Received That Assessee Has Indulged In A Share Trading Activities In The Shares Of Caplin Point & Has Earned Short-Term Capital Loss Of ₹ 598,630/– Long-Term Capital Loss Of ₹ 51,709/– & Loss Of ₹ 2,393,177/– From Future & Option Transactions. However As Per The Broker Note The Assessee Has Made A Short-Term Capital Gain Of ₹ 191,103. Further The Future & Option Transactions Also Needs

Section 142Section 144Section 147Section 148Section 68

Kalpesh Vaghasia, Mumbai vs. ITO-32(2)(2), Mumbai

In the result both the appeals are partly allowed for statistical purposes

ITA 214/MUM/2024[2009-10]Status: DisposedITAT Mumbai28 Jun 2024AY 2009-10

Bench: Shri Prashant Maharishi (Am) I.T.A. No. 214/Mum/2024 (A.Y. 2009-10) I.T.A. No. 215/Mum/2024 (A.Y. 2010-11) Kalpesh Vaghasia Vs. Ito-32(2)(2) 7Th Floor, 701, Kings Kautilya Bhavan Apartment, Juhu Tara Mumbai. Road, Mumbai-400 049. Pan : Aaepv7332E (Appellant) (Respondent) Assessee By Shri Prateek Jain Department By Shri R.R. Makwana Date Of Hearing 10.06.2024 Date Of Pronouncement 28.06.2024 O R D E R 1. These Are The Two Appeals Filed By The Assessee For Assessment Year 2009 – 10 & 2010 – 11 Against The Appellate Order Passed By The National Faceless Appeal Centre, Delhi (Learned Cit – A) Dated 17/11/2023 Wherein The Appeal Is Filed By The Assessee Were Disposed Of Ex Party Which Were Filed Against Assessment Order Is Passed Under Section 144 Read With Section 147 Of The Income Tax Act For Both The Years On 27/12/2016. 2. The Brief Facts Of The Case For Assessment Year 2009 – 10 Shows That The Assessee Has Not Filed Any Return Of Income. Subsequently The Information Was Received That Assessee Has Indulged In A Share Trading Activities In The Shares Of Caplin Point & Has Earned Short-Term Capital Loss Of ₹ 598,630/– Long-Term Capital Loss Of ₹ 51,709/– & Loss Of ₹ 2,393,177/– From Future & Option Transactions. However As Per The Broker Note The Assessee Has Made A Short-Term Capital Gain Of ₹ 191,103. Further The Future & Option Transactions Also Needs

Section 142Section 144Section 147Section 148Section 68

Randheja Dudh Utpadak Sahakari Mandli Ltd., Gandhinagar vs. The ITO, Ward-3 Now Ward-1, Gandhinagar

The appeal of the assessee is allowed

ITA 649/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad27 Jun 2024AY 2017-18

Bench: Smt.Annapurna Guptaasstt. Year : 2017-18 Randheja Dudh Utpadak The Ito, Ward-3 Sahakari Mandli Ltd. Vs Now Ward-1 To-Randheja Gandhinagar. Tal: Gandhinagar Pin : 382 620 Pan : Aacar 5164 K (Applicant) (Responent) Assessee By : Shri M.K. Patel, Advocate Revenue By : Shri Ketan Gajjar, Sr.Dr सुनवाई क" तारीख/Date Of Hearing : 04/04/2024 घोषणा क" तारीख /Date Of Pronouncement: 27/06/2024 आदेश/O R D E R आदेश आदेश आदेश The Present Appeal Has Been Filed By The Assessee Against Order Passed By The Commissioner Of Income Tax(Appeals), National Faceless Appeal Centre, Delhi [In Short Referred To As Ld.Cit(A)] Under Section 250 Of The Income Tax Act, 1961 Dated 22.11.2021 Pertaining To Asst.Year 2017-18. 2. The Registry Has Notified That The Appeal Of The Assessee Is Barred By Limitation By 581 Days. In Order To Explain The Reasons For The Impugned Delay, The Ld.Counsel For The Assessee Submitted That The Cit(A)/Nfac Order Was Passed Against The Assessee On 22.11.2021. However, Due To Covid-19 Pandemic Limitation For Filing Appeal Before The Court Of Law Was Extended Till February, 2022. Therefore, After Expiry Of The Limitation For Filing Of The Appeal On Feb., 2022, The Assessee Was Required To File Appeal Within 60 Days Of The Same I.E. By April, 2022. But The Assessee Could File The Appeal On

For Appellant: Shri M.K. Patel, AdvocateFor Respondent: Shri Ketan Gajjar, Sr.DR
Section 250