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)

ITO, Ward-8(1), Kolkata vs. M/S Maninya Comfin Pvt Ltd, Kolkata

In the result, appeal of the revenue is partly allowed as per terms indicated hereinabove

ITA 79/KOL/2021[2012-13]Status: DisposedITAT Kolkata03 Aug 2023AY 2012-13

Bench: Dr. Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 79/Kol/2021 Assessment Year: 2012-13 Income Tax Officer, Ward-8(1), M/S. Maninya Comfin Pvt. Ltd. Kolkata Vs 9, Lal Bazar Street Lal Bazar Kolkata - 700001 [Pan : Aadcm5088N] अपीलाथ"/ (Assessee ) "" यथ"/ (Respondent) Assessee By : Shri Vinod Kr. Jain, A/R Revenue By : Shri Vijay Kumar, Addl. Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 13/07/2023 घोषणा क" तारीख /Date Of Pronouncement: 03/08/2023 आदेश/O R D E R Per Dr. Manish Borad: This Is An Appeal Preferred By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-4, Kolkata (Hereinafter Referred To As The Ld. Cit(A)”], Passed U/S 250 Of The Income-Tax Act, 1961 (Hereinafter The ‘Act’), Dated 26/09/2018 For The Assessment Year 2012-13. 2. The Assessee Has Raised The Following Grounds Of Appeal:- “1. Whether On The Facts & Circumstances Of The Case, The Ld. Cit(A) Erred In Deleting The Addition Made U/S. 68 Of Rs. 7,96,16,343/- On Account Of Unexplained Cash Credit In The Form Of Share Capital With Premium. 2. Whether On The Facts & Circumstances Of The Case The Ld. Cit(A)-4, Kol., Is Erred In Deleting The Addition Without Considering The Facts That The Source Of Fresh Share Capital Amount Was Not Properly Explained By The Assessee During The Course Of Assessment Proceedings & The Director Of The Assessee Company Did Not Appear Against Summon U/S. 131 To Substantiate The Claim Of The Assessee With Documentary Evidences. 3. Whether On The Facts & Circumstances Of The Case The Ld. Cit(A), Failed To Appreciate That When The Sums Are Credited In The Books Of Accounts

For Appellant: Shri Vinod Kr. Jain, A/RFor Respondent: Shri Vijay Kumar, Addl. CIT, D/R
Section 131Section 143(2)Section 250Section 68

Hunt International Investments Llc, Mumbai vs. DCIT, Circle Int Taxation, 2(1)(1), New Delhi

In the result, impugned order is set-aside and the appeal is allowed for statistical purposes

ITA 916/MUM/2023[2015-2016]Status: DisposedITAT Mumbai31 Jul 2023AY 2015-2016

Bench: Shri Vikas Awasthy & Ms. Padmavathy Sआअसं. 916/मुं/2023 (िन.व. 2015-16) Hunt International Investments Llc 205-206, Regent Chambers, 2Nd Floor, Jamnalal Bajaj Road, 208, Nariman Point, Mumbai-400021. Pan: Aadch0520J ...... अपीलाथ" /Appellant बनाम Vs. Dcit, Circle International Taxation-2(1)(1), Civic Centre, Minto Road, New Delhi-110002. ..... "ितवादी/Respondent अपीलाथ" "ारा/ Appellant By : Sh. A.N. Shah "ितवादी "ारा/Respondent By : Sh. Anil Sant, Sr. Dr सुनवाई की ितिथ/ Date Of Hearing : 31/07/2023 घोषणा की ितिथ/ Date Of Pronouncement : 31/07/2023 आदेश/ Order Per Vikas Awasthy, Jm This Appeal By The Assessee Is Directed Against The Assessment Order Dated 27.01.2023 Passed Under Section 144C(13)/143(3) R.W.S. 147 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’), For The Assessment Year 2015-16. 2. Sh. A.N. Shah Appearing On Behalf Of The Assessee Submitted That The Assessee Is A Tax Resident Of Usa. The Assessee Is A Registered Foreign Portfolio Investor [Category-Iii]. The Assessee Primarily Invests In Shares To Earn Long Term

For Appellant: Sh. A.N. ShahFor Respondent: Sh. Anil Sant, Sr. DR
Section 10(38)Section 142(1)Section 144Section 144C(13)Section 148