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)

Joynet Developers LLP, Mumbai vs. Pr.CIT-27, Navi Mumbai

In the result, the appeal filed by the assessee is hereby allowed

ITA 868/MUM/2021[2016-17]Status: DisposedITAT Mumbai21 Feb 2022AY 2016-17

Bench: Shri Amarjit Singh, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No. 868/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2016-17) Joynet Developers Llp बिधम/ Pr. Cit Room No. 401, 4Th Floor, 101/B, Bellona, Pant Nagar, Vs. 90 Feet Road, Ghatkopar Tower No.6, Vashi Station East, Mumbai-400075. Complex, Vashi-400703. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aamfk0186D (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Hemant Shah Revenue By: Shri Achal Sharma (Dr) सुनवाई की तारीख / Date Of Hearing: 17/01/2022 घोषणा की तारीख /Date Of Pronouncement: 21/02/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 25.03.2021 Passed By The Principal Commissioner Of Income Tax(“Pcit”)- 27, Mumbai [Hereinafter Referred To As The “(Pcit)”] In View Of The Provisions U/S 263 Of The Act. 2. The Assessee Has Raised The Following Grounds: - “The Following Grounds Are Independent Of & Without Prejudice To One Another: 1. On The Facts & Circumstances Of The Case & In Law, The Learned Principal Commissioner Of Income Tax, Mumbai-27 Has Erred In Setting Aside The Order Passed U/S 143(3) Of The Act By The Learned

For Appellant: Shri Hemant ShahFor Respondent: Shri Achal Sharma (DR)
Section 143(3)Section 263

Ruttonsha International Rectifier Limited, Mumbai vs. ITO -13(3)(2), Mumbai

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

ITA 6035/MUM/2019[2014-15]Status: DisposedITAT Mumbai18 Feb 2022AY 2014-15

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No. 6035/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) Ruttonsha International बिधम/ Ito-13(3)(2) Room No.227, 2Nd Floor, Rectifier Ltd Vs. 139/141, B- Wing, 1St Floor, Aayakar Bhavan, M. K. Solaris Building No.1, Saki Road, Mumbai-400020. Vihar Road, Powai, Andheri (E), Mumbai-400072. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacr2816E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Homiyar Madan Revenue By: Shri Abdul Hakeem सुनवाई की तारीख / Date Of Hearing: 22/11/2021 घोषणा की तारीख /Date Of Pronouncement: 18/02/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 24.06.2019 Passed By The Commissioner Of Income Tax (Appeals)-21, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2014-15. 2. The Assessee Has Raised The Following Grounds: - “1. The Cit(A) Erred In Upholding The Order Of The Assessing Officer Wherein The Assessing Officer Added Back Expenditure Failing To Appreciate That Each Item Was Below The Value Or Rs.5,000/- & Was In The Nature Of Repair & Replacement Expenditure.

For Appellant: Shri Homiyar MadanFor Respondent: Shri Abdul Hakeem
Section 143(1)Section 143(2)

The ITO, Ward 8(4), Ahmedabad vs. Varij Builders Pvt. Ltd., Ahmedabad

In the result, assessee’s appeal is allowed; whereas the appeal of the Revenue is dismissed

ITA 2008/AHD/2013[2008-09]Status: DisposedITAT Ahmedabad16 Feb 2022AY 2008-09

Bench: Ms.Annapurna Gupta, Accountant Memeber & T.R. Senthil Kumarassessment Year : 2008-09 Varij Builders P.Ltd. Ito, Ward-8(4) 2, Sejal House Vs Ahmedabad. Nr. Maninagar Railway Station Maninagar Ahmedabad 380 008. Pan : Aaccv5656Q Assessment Year : 2008-09 Ito, Ward-8(4) Varij Builders P.Ltd. Ahmedabad. Vs 2, Sejal House Nr. Maninagar Railway Station Maninagar Ahmedabad 380 008 अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Ms.Nupur Shah, Ar & Shri Dhiren Shah, Ar Revenue By : Shri Rameshkumar L. Sadhu, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 09/02/2022 घोषणा क" तार"ख /Date Of Pronouncement: 16/02/2022 आदेश/O R D E R Per T.R. Senthil Kumar: These Are Cross Appeals One Filed By The Assessee In Ita No.1915/Ahd/2013 & Another Filed By The Revenue In Ita No.2008/Ahd/2013 Against Order Dated 9.5.2013 Passed By The Ld.Commissioner Of Income-Tax (Appeals)-Xiv, Ahmedabad [In Short Referred As “Ld.Cit(A)”] Relating To The Assessment Year 2008-09. Ita No.1915 & 2008/Ahd/2013 2 2. Original Grounds Of Appeal Raised By The Assessee Are As Follows: “1. The Ld. Cit(A) Has Erred In Law & On Facts In Confirming The Addition Of Unexplained Cash Credit U/S.68 Of The Act Of Rs.92,00,000/- On Account Of Share Application Money Received In Cash.

For Appellant: Ms.Nupur Shah, AR and Shri Dhiren Shah, ARFor Respondent: Shri Rameshkumar L. Sadhu, Sr.DR
Section 143(1)(a)Section 143(2)Section 147Section 148Section 68

Varij Builders Pvt. Ltd., Ahmedabad vs. The Income Tax Officer, . Ward-8(4), Ahmedabad

In the result, assessee’s appeal is allowed; whereas the appeal of the Revenue is dismissed

ITA 1915/AHD/2013[2008-09]Status: DisposedITAT Ahmedabad16 Feb 2022AY 2008-09

Bench: Ms.Annapurna Gupta, Accountant Memeber & T.R. Senthil Kumarassessment Year : 2008-09 Varij Builders P.Ltd. Ito, Ward-8(4) 2, Sejal House Vs Ahmedabad. Nr. Maninagar Railway Station Maninagar Ahmedabad 380 008. Pan : Aaccv5656Q Assessment Year : 2008-09 Ito, Ward-8(4) Varij Builders P.Ltd. Ahmedabad. Vs 2, Sejal House Nr. Maninagar Railway Station Maninagar Ahmedabad 380 008 अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Ms.Nupur Shah, Ar & Shri Dhiren Shah, Ar Revenue By : Shri Rameshkumar L. Sadhu, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 09/02/2022 घोषणा क" तार"ख /Date Of Pronouncement: 16/02/2022 आदेश/O R D E R Per T.R. Senthil Kumar: These Are Cross Appeals One Filed By The Assessee In Ita No.1915/Ahd/2013 & Another Filed By The Revenue In Ita No.2008/Ahd/2013 Against Order Dated 9.5.2013 Passed By The Ld.Commissioner Of Income-Tax (Appeals)-Xiv, Ahmedabad [In Short Referred As “Ld.Cit(A)”] Relating To The Assessment Year 2008-09. Ita No.1915 & 2008/Ahd/2013 2 2. Original Grounds Of Appeal Raised By The Assessee Are As Follows: “1. The Ld. Cit(A) Has Erred In Law & On Facts In Confirming The Addition Of Unexplained Cash Credit U/S.68 Of The Act Of Rs.92,00,000/- On Account Of Share Application Money Received In Cash.

For Appellant: Ms.Nupur Shah, AR and Shri Dhiren Shah, ARFor Respondent: Shri Rameshkumar L. Sadhu, Sr.DR
Section 143(1)(a)Section 143(2)Section 147Section 148Section 68