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 33 (1)(5), Mumbai vs. Harshad M. Padia, Mumbai

In the result, appeals filed by the revenue for assessment year 2010-11

ITA 5821/MUM/2018[2010-11]Status: DisposedITAT Mumbai30 Sept 2019AY 2010-11

Bench: Shri S. Rifaur Rahman (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-2011 & Assessment Year: 2011-2012 The Ito-33(1)(5), Shri Harshadrai M. Padia, C-12, 703, Pratyakshakar Khyati Hydraulics, 13, Bhavan, Bkc, Gopal Kunj, Sarojini Naidu Mumbai - 400051 Vs. Road, Kandivali (West), Mumbai - 400067 Pan: Aabpp1488Q (Appellant) (Respondent) Revenue By : Shri C.S. Sharma (Dr) Assessee By : None Date Of Hearing: 24/09/2019 Date Of Pronouncement: 30/09/2019 O R D E R Per Ram Lal Negi, Jm These Appeals Have Been Filed By The Revenue Against The Orders Dated 08.06.2018 & 11.06.2018 Passed By The Commissioner Of Income Tax (Appeals)-45 (For Short ‘The Cit(A), Mumbai, For The Assessment Years 2010-11 & 2011-12 Respectively, Whereby The Ld. Cit(A) Has Partly Allowed The Appeals Filed By The Assessee Against The Assessment Order Passed U/S 143 (3) R.W.S 147 Of The Income Tax Act, 1961 (For Short The ‘Act’). Since, Both The Appeals Pertain To The Same Assessee, The Same Were Clubbed, Heard Together & Are Being Disposed Of By This Common & Consolidated Order For The Sake Of Convenience. The Brief Facts Of The Case Are That The Assessee An Individual & Proprietor Of M/S Khyati Hydraulics Engaged In The Business Of Manufacture Assessment Years: 2010-11 & 2011-12

For Appellant: NoneFor Respondent: Shri C.S. Sharma (DR)
Section 133(6)Section 142Section 143Section 148

Shri Shabbir Kutbuddin Attar, Mumbai vs. ITO 28(3)(2), Mumbai

In the result, appeal filed by the assessee for assessment years 2010-11

ITA 5293/MUM/2018[2010-11]Status: DisposedITAT Mumbai30 Sept 2019AY 2010-11

Bench: Shri G. Manjunatha (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-2011 & Assessment Year: 2011-2012 Shri Shabbir Kutbuddin Attar, The Ito 28(3)(2), B-402, 4Th Floor, Sawan Elegence, Vashi Income Tax Department Plot No. 68/69, Sector – 2A, Koparkhairne, Vs. Navi Mumbai - 400701 Pan: Ahcpa9351M (Appellant) (Respondent) Assessee By : Shri Sabir M. Shaikh (Ar) Revenue By : Shri R. Bhoopathi (Dr) Date Of Hearing: 30/09/2019 Date Of Pronouncement: 30/09/2019 O R D E R Per Ram Lal Negi, Jm These Appeals Have Been Filed By The Assessee Against The Two Orders Dated 29.06.2018 Passed By The Commissioner Of Income Tax (Appeals)-26 (For Short ‘The Cit(A), Mumbai, For The Assessment Years 2010-11 & 2011-12 Respectively, Whereby The Ld. Cit(A) Has Dismissed The Appeals Filed By The Assessee Against The Assessment Orders Passed U/S 143 (3) R.W.S 147 Of The Income Tax Act, 1961 (For Short The ‘Act’). Brief Facts Of The Case Are That The Assessee A Trader/Retailer In Various Hardware Tools & Equipments Used In Plants & Machinery, Had Filed Its Return Of Income For The Assessment Year Under Consideration Declaring Total Income Of Rs. 3,30,436/-. Subsequently, In The Year 2016 The Ao Received Information From Sales Tax Department Maharashtra Through Dgit (Investigation) To The Effect That The Assessee During The Year Relevant To The Assessment Years: 2010-11 & 2011-12

For Appellant: Shri Sabir M. Shaikh (AR)For Respondent: Shri R. Bhoopathi (DR)
Section 133(6)Section 143Section 147Section 148

M/S.Valson Fabricators, Mumbai vs. ITO 28(3)(4), Mumbai

In the result, appeal filed by the assessee for assessment year 2010-2011

ITA 5292/MUM/2018[2010-11]Status: DisposedITAT Mumbai30 Sept 2019AY 2010-11

Bench: Shri G. Manjunatha (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 M/S Valsons Fabricators, The Ito-28(3)(4), Plot No. 85, Midc Thane Belapur Tower No. 6, Vashi Station Road, Ttc Industrial Area, Complex, Vashi, Navi Mumbai - 400701 Vs. Navi Mumbai - 400703 Pan: Aacfv5519P (Appellant) (Respondent) Assessee By : Ms. Neha Paranjape (Ar) Revenue By : Shri R. Boopathi (Dr) Date Of Hearing: 30/09/2019 Date Of Pronouncement: 30/09/2019 O R D E R Per Ram Lal Negi, Jm This Appeal Has Been Filed By The Assessee Against The Order Dated 25.06.2018 Passed By The Commissioner Of Income Tax (Appeals)-26 (For Short ‘The Cit(A), Mumbai, For The Assessment Year 2010-11, Whereby The Ld. Cit(A) Has Dismissed The Appeal Filed By The Assessee Against The Assessment Order Passed U/S 143 (3) Read With Section 147 Of The Income Tax Act, 1961 (For Short The ‘Act’). Brief Facts Of The Case Are That The Assessee Engaged In The Business Of Manufacturing & Dealing In Roll Forming Machinery & Dies Etc., Filed Its Return Of Income For The Assessment Year Under Consideration Declaring Total Income Of Rs. 2,17,660/-. The Return Was Processed U/S 143(3) Of The Act. Subsequently, In The Year 2015 The Ao Received Information From Sales Tax Department Maharashtra Through Dgit (Investigation) To The Effect That The Assessee During The Year Relevant To The Assessment Year Under Consideration Obtained Bogus Purchase Bills Amounting To Rs. 8,41,933/- From Five Parties, Whose Were Listed As Hawala Dealers By The Sales Tax Department, Without Assessment Year: 2010-11

For Appellant: Ms. Neha Paranjape (AR)For Respondent: Shri R. Boopathi (DR)
Section 133(6)Section 143Section 143(3)Section 147Section 148