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)

Sunita Rakesh Jain, Mumbai vs. ITO -29(3)(4), Mumbai

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

ITA 542/MUM/2021[2015-16]Status: DisposedITAT Mumbai20 Dec 2021AY 2015-16

Bench: Shri Om Prakash Kant, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.542/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2015-16) Sunita Rakesh Jain बिधम/ Ito-29(3)(4) 308, 3Rd Floor, C-10, 1701, Brighton Towers, Hari Vs. Om Nagar, Near Eastern Pratyakshakar Bhawan, Express Highway Mulund Bandra Kurla Complex, Bandra (E), Mumbai- East, Mumbai-400081. 400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Agqpj7159M (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Sanjiv Brahme Revenue By: Shri Bhomika Patel सुनवाई की तारीख / Date Of Hearing: 29/11/2021 घोषणा की तारीख /Date Of Pronouncement: 20/12/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 13.12.2019 Passed By The Commissioner Of Income Tax (Appeals)-40, Mumbai (Hereinafter Referred To As The “Cit(A)”) Relevant To The A.Y.2015- 16. 2. The Assessee Has Raised The Following Grounds: - “1. The Cit(A) Failed To Service A Proper Notice To The Appellant & Passed The Ex-Parte Order. A.Y.2015-16 2. The Cit(A) Failed To Appreciate That The Ao Did Not Carry Out Any Independent Enquiry Himself For The Reconciliation Of Sales Amount Therefore, The Addition Sustained By Cit(A) Is Unjustified & Is Liable To Be Deleted.

For Appellant: Shri Sanjiv BrahmeFor Respondent: Shri Bhomika Patel
Section 143(2)Section 234ASection 271(1)(c)

Dy CIT - 26(1), Mumbai vs. M/S. Vijay Engg. Works., Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

ITA 469/MUM/2021[2009-10]Status: DisposedITAT Mumbai17 Dec 2021AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.469/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2009-10) Dcit-26(1) बिधम/ M/S. Vijay Engineering Room No.623, 6Th Floor, Works, Vs. Kautilya Bhavan, Bandra Unit No.11, Kamaldeep Kurla Complex, Bandra (E), Industrial Estate Sonawala Mumbai-400051. Cross Road No.2, Goregaon East, Mumbai-400063. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaafv1227E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Prasoon Kabra Assessee By: None सुनवाई की तारीख / Date Of Hearing: 25/11/2021 घोषणा की तारीख /Date Of Pronouncement: 17/12/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 22.01.2020 Passed By The Commissioner Of Income Tax (Appeals) -42 Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2009- 10. 2. The Revenue Has Raised The Following Grounds: - "On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Deleting Addition Of Rs.1,09,659/- For Ay 2007-08 On Account Of Bogus Purchases?" A.Y.2009-10 On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Not Considering That The Addition Was Made On The Basis Of Information Received From Dgit(Lnv.) & Sales Tax Department, Maharashtra With Regard To Bogus Purchase Made By The Assessee From Dealers Without Supply Of Actual Goods."

For Appellant: NoneFor Respondent: Shri Prasoon Kabra
Section 133(6)Section 143(1)Section 143(2)Section 147

ITO, Ward-4(1), Thane vs. Shri Akshay Anil Sawant, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

ITA 420/MUM/2021[2009-10]Status: DisposedITAT Mumbai17 Dec 2021AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. Nos. 420 To 422/Mum/2021 (निर्धारण वर्ा / Assessment Years: 2009-10, 2010-11 & 2011-12) Ito Ward-4(1), Thane बिधम/ Shri Akshay Anil Sawant Room No.03, A- Wing 6Th Prop M/S. Akshay Plastics, 12, Vs. Floor, Ashar It Park, Wagle Sarang Industrial Estate, Industrial Estate, Thane(W)- Navghar Road, Vasai (E)- 400604. 401210. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Bhgps4851P (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Prasoon Kabra (Dr) Assessee By: Shri Vinay Bhoir (Ar) सुनवाई की तारीख / Date Of Hearing: 22/11/2021 घोषणा की तारीख /Date Of Pronouncement: 17/12/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -03, Thane [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys.2009- 10 To 2011-12. Ita. No.420/Mum/2021 2. The Revenue Has Filed The Present Appeal Against The Order Dated 25.02.2020 Passed By The Cit(A)-03, Thane [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2009-10. 3. The Revenue Has Raised The Following Grounds: -

For Appellant: Shri Vinay Bhoir (AR)For Respondent: Shri Prasoon Kabra (DR)
Section 133(6)Section 143(2)Section 148

ACIT, Central Circle- 15, New Delhi vs. Hal Offshore Ltd., New Delhi

In the result, we hold that addition of share capital in the year under consideration has been made without relying on any incriminating material found during the course of search

ITA 6956/DEL/2018[2015-16]Status: DisposedITAT Delhi14 Dec 2021AY 2015-16

Bench: Shri R.K. Panda & Shri Kul Bharatassessment Year: 2015-16 Acit, Vs Hal Offshore Ltd., Central Circle-15, 25, Bazar Lane, New Delhi. Bengali Market, New Delhi. (Appellant) (Respondent) Assessee By : Shri Gautam Jain, Advocate & Shri Lalit Mohan, Ca Revenue By : Ms Paramita M. Biswas, Cit, Dr Date Of Hearing : 16.09.2021 Date Of Pronouncement : 14.12.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 2Nd August, 2018 Of The Cit(A)-26, New Delhi, Relating To Assessment Year 2015-16. 2. Facts Of The Case, In Brief, Are That The Assessee Is One Of The Group Companies Of Mmg Group & Has Business Interest In Several Segments Like Chartering & Leasing Of Vessels To Ongc & Shipping, Etc. In This Case, A Search & Seizure Operation U/S 132 Of The It Act, 1961 Was Carried Out On 28Th March, 2015. During The Course Of Search, Documents & Data Storage Devices, Etc., Belonging To The Assessee Were Found & Seized. The Assessee Filed Its Return Of Income On 29Th July, 2016 For The Assessment Year 2015-16 Declaring The Total Income At Rs.12,15,49,580/-. Notice U/S 143(2) Was Issued On 20Th May, 2016 Which Was Duly Served On The Assessee. Subsequently, Notice U/S 142(1) Along With A Questionnaire Was Issued To The Assessee Calling For Certain Information. The Assessee Complied To The Said Questionnaire By Filing The Requisite Details.

For Appellant: Shri Gautam Jain, Advocate &For Respondent: Ms Paramita M. Biswas, CIT, DR
Section 132Section 132(4)Section 142(1)Section 143(2)