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)

The ITO, Ward-7(3), Surat vs. Shri Rajkumar Goyal, Surat

In the result this ground of appeal is also rejected

ITA 1487/AHD/2012[2005-06]Status: DisposedITAT Surat13 May 2021AY 2005-06

Bench: Shri Pawan Singh, Hon'Ble & Dr. Shri Arjun Lal Saini, Hon'Ble(Virtual Hearing) आ.अ.सं./I.T.A No.1487/Ahd/2012 "नधा"रण वष"/Assessment Year: 2005-06 The Income Tax Officer, Vs. Shri Rajkumar Goyal, Ward-7(3), Surat. Prop. Of Balaji Corporation, 201, Keshri Nandan Apartment, Bhothia Sheri, Rughnathpura, Surat – 395003. [Pan: Adtpj 2924 Q] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओर से /Assessee By Shri P.M.Jagasheth - Ca राज"वक"ओर से /Revenue By Shri Ritesh Mishra – Cit-Dr सुनवाई की तारीख/ Date Of Hearing: 18.03.2021 उ"घोषणा क" तार"ख/Pronouncement On: 17.05.2021 आदेश /O R D E R Per Pawan Singh, Judicial Memeber: 1. This Appeal By The Revenue Is Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-V, Surat Hereinafter Referred As “Ld. Cit(A)” Dated 29.03.2012 For The Assessment Year (Ay) 2005-06. The Revenue Has Raised Following Grounds Of Appeal: “1. On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit (A) Has Erred In Deleting The Addition On Account Of Unverifiable Purchase Amounting To Rs. 7,91,01,863/-. 2. On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit (A) Has Erred In Deleting The Addition On Account Of In Difference In Closing Balance Of Rs.8,05,11,522/-. 3. It Is Therefore Prayed That The Order Of The Ld. Cit (A) Be Set Aside & The Assessing Officer ‘S Order Be Restored.”

Section 133(6)Section 142(1)Section 143(3)Section 147Section 148

ACIT 32 (1), Mumbai vs. Shri Himanshu K Modi, Mumbai

The appeal stands dismissed

ITA 5786/MUM/2019[2008-19]Status: DisposedITAT Mumbai03 May 2021AY 2008-19

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No.5786/Mum/2019 (धििाारण वर्ा / Assessment Year: 2008-09) & आयकरअपील िं./ I.T.A. No.5811/Mum/2019 (धििाारण वर्ा / Assessment Year: 2009-10) Acit-32(1) Sh. Himanshu K.Modi R.No.702, 7Th Floor C-4/006, Yogi Darpan Society बिाम Kautilya Bhawan Eksar Road, Borivali / Vs. Bandra Kurla Complex Mumbai – 400 091 Bandra (East), Mumbai 400 051 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aacpm-8724-B (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Kamlesh Doshi-Ld. Ar) Revenue By : Shri S.S.Iyengar-Ld. Dr ुनवाई की तारीख/ : 12/04/2021 Date Of Hearing घोषणा की तारीख / : 03/05/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Revenue For Assessment Years (Ay) 2008-09 & 2009-10 Contest Separate Orders Of Learned First Appellate Authority Which Has Provided Certain Relief To The Assessee On Account Of Alleged Bogus Purchases. The Facts As Well As Issues Are, More Or Less, Common & Therefore, The Appeals Were Heard Together & Are Now Being

For Appellant: Shri Kamlesh Doshi-Ld. AR)For Respondent: Shri S.S.Iyengar-Ld. DR
Section 133(6)Section 142(1)Section 143(3)Section 148

Shri Jayvadan Ramniklal Kapadia, Surat vs. The Dy.CIT, Circle-3, Surat

In the result, appeal of the assessee is allowed

ITA 406/AHD/2015[2003-04]Status: DisposedITAT Surat26 Apr 2021AY 2003-04

Bench: Shri Pawan Singh, Hon'Ble & Dr. Arjun Lal Saini, Hon'Ble(Virtual Hearing) आ.अ.सं./I.T.A No.406/Ahd/2015 "नधा"रण वष"/Assessment Year: 2003-04 Jyotiben Jayvadan Kapadia & V The Deputy Commissioner Of Rupesh Jayvadan Kapadia, S. Income, Circle-3, Surat. L/H Of Jayvadan Ramniklal Kapaida, A/2, Aamrakunj Society, Nr.Pujara Hospital, Ghod Dod Road, Surat. [Pan: Achpk 3121 D] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओर से /Assessee By Shri Manish Shah – Ar राज"वक"ओर से /Revenue By Smt. Anupama Singla – Sr.Dr सुनवाई की तारीख/ Date Of Hearing: 26.04.2021 उ"घोषणा क" तार"ख/Pronouncement On: 26.04.2021 आदेश /O R D E R Per Pawan Singh, Judicial Memeber: 1. This Appeal By The Assessee Is Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-Ii, Surat Hereinafter Referred As “Ld.Cit(A)” Dated 24.12.2014 For The Assessment Year (Ay) 2003-04. The Assessee Has Raised Following Grounds Of Appeal: “1. The Ld.Cit(A) Has Grossly Erred In Confirming Penalty On Gift Received From The Different Persons Of Rs.9,07,224/-. 2. The Ld. Cit(A) Has Not Considered The Fact That All The Donors Having Pan No. & Given Gift Declaration Also To Prove Their Willingness & Genuineness. 3. The Ld. Dcit & Ld. Cit(A) Has Not Taken Into Consideration That The Assessee Has Voluntarily Offered Gift As Additional Income To Buy Peace Of Mind, Avoid Harassment & Avoid Further Litigation & Subject To Non Levy Of Penalty.

Section 139(5)Section 142(1)Section 143(2)Section 143(3)Section 254Section 271(1)(c)Section 274