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)

Shri Kana Ram Kumawat, Jaipur vs. ITO, Ward 2(1), Jaipur

In the result, this appeal of the assessee is allowed

ITA 1377/JPR/2019[2008-09]Status: DisposedITAT Jaipur16 Aug 2021AY 2008-09

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 1377/Jp/2019 Fu/Kzkj.K O"Kz@Assessment Year: 2008-09 Kana Ram Kumawat, Cuke I.T.O., Vs. “Wisdom”, 23 Purohit Ji Baas, Ward- 2(1), Hawa Sarak, Laxmi Dharm Kanta Jaipur. Gali End, 22 Godam, Jaipur- 302006. Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Ahcpk 0149 H Appellant Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By: Shri Anil Kaushik (Ca) Jktlo Dh Vksj Ls@ Revenue By: Smt. Monisha Choudhary(Jcit) Lquokbz Dh Rkjh[K@ Date Of Hearing : 28/06/2021 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 16/08/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. This Is The Appeal Filed By The Assessee Against The Order Of The Ld. Cit(A)-I, Jaipur Dated 11/09/2019 For The A.Y. 2008-09. The Grounds Taken By The Assessee Are As Under: “1. Under The Facts & Circumstances Of The Case, The Order Passed U/S 148/144 By Ld. Ao Is Illegal & Bad In Law & Is Invalid Abinitio. 2. The Assessee Has Filed His Income Tax Return On Time, Obtained The Tax Audit Report On Time & The Return So Filed Was Processed & Refund Was Granted By The Department Which Is Duly Posted In 26As By The Department, Despite That Reassessment Proceedings Were Initiated For The Reason That The Assessee Did Not File His Itr, Thus The Very Basis Of Selection Of The Case For Reassessment U/S 147/148 Of The Act Is Ill Founded, Grossly Incorrect & False & In Contradiction With The Facts Available With The Department, Hence, The Reassessment Proceedings

For Appellant: Shri Anil Kaushik (CA)For Respondent: Smt. Monisha Choudhary(JCIT)
Section 145(3)Section 147Section 148Section 44A

Sri Ganraj Buildcon Private Limited, New Delhi vs. ACIT (OSD) Ward - 24(2), New Delhi

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

ITA 1760/DEL/2020[2016-17]Status: DisposedITAT Delhi04 Aug 2021AY 2016-17

Bench: Shri R.K. Pandaassessment Year: 2016-17 Sri Ganraj Buildcon Private Ltd., Vs. Acit (Osd), H-255, Phase-I, Ward-24(2), Ashok Vihar, New Delhi. New Delhi. Pan: Aavcs3068C (Appellant) (Respondent) Assessee By : None Revenue By : Shri R.K. Gupta, Sr.Dr Date Of Hearing : 04.08.2021 Date Of Pronouncement : 04.08.2021 Order This Appeal By The Assessee Is Directed Against The Ex Parte Order Dated 18Th February, 2020 Of The Cit(A)-8, New Delhi, Relating To Assessment Year 2016-17. 2. Notice Issued Through Registry Was Returned Unserved By The Postal Authorities With The Remark “Left Without Address.” Therefore, This Appeal Is Being Decided On The Basis Of Material Available On Record & After Hearing The Ld. Dr. 3. Although A Number Of Grounds Of Appeal Have Been Raised By The Assessee, These All Relate To The Ex Parte Order Of The Cit(A) In Confirming The Addition Of Rs.26,22,300/- Made By The Ao In The Order Passed U/S 143(3) Of The It Act, 1961. 4. Facts Of The Case, In Brief, Are That The Assessee Is A Private Limited Company & Is Engaged In The Business Of Real-Estate Developers, Builders, Engineers, Surveyors, Contractors, Etc. It Filed Its Return Of Income On 28Th March, 2017 Declaring The Total Income At Rs.32,840/-. The Case Of Assessee Was Selected For Limited Scrutiny Under Cass For The Following Reasons:- “(I) “High Cash In Hand Shown In Balance Sheet As Compared To Preceding Year & Return Of Income Filed After 07.11.2016. Whether Cash In Hand Shown In Return Of Income Is Correct” & (Ii) “Large Investment In Property As Compared To Total Income & Whether Investment & Income Relating To Properties Are Duly Disclosed".

For Appellant: NoneFor Respondent: Shri R.K. Gupta, Sr.DR
Section 142(1)Section 143(3)Section 68