Section 142(2) of the Income Tax Act

Income-tax Act, 2025: s.268

Section 142(2) 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(2) is Tata Industries Ltd. v. ITO (181 TTJ 600), cited in 29 of the 83 judgments on BharatTax that turn on this section.

Leading authorities on Section 142(2)

Tata Industries Ltd. v. ITO
181 TTJ 600 · 2016 · ITAT
29
citing judgments

Disallowance under Section 14A cannot exceed the exempt income earned by the assessee. Even if interest expenditure is considered, it cannot be solely attributed to earning exempt dividend income as investors also consider potential capital gains.

CIT v. K. S. Venkatksubbiah Reddiar
221 ITR 18 · High Court
27
citing judgments

An activity is considered business if it involves a continuous course of activity and is carried on with a profit motive.

Lok Housing & Construction Ltd. v. Asstt. Commissioner of Income Tax
27 Taxmann.com 15 · 2012 · ITAT
27
citing judgments

A revised return filed beyond the period of limitation under section 139(5) can still be considered valid if it rectifies an omission, such as a discrepancy in turnover due to market price changes.

CIT v. Sukhini P. Modi
367 ITR 682 · 2014 · High Court
21
citing judgments

A notice issued under Section 143(2) is a jurisdictional notice, and the absence of such a notice renders the assessment order invalid. Failure to issue a valid notice under Section 143(2) cannot be cured by subsequent actions or findings.

Rekha Rani v. DCIT
154 ITD 617 · 2015 · ITAT
19
citing judgments

Penalty under section 271(1)(b) cannot be imposed for each and every notice issued under section 143(2) that remains uncomplied with; it should be restricted to the first default only.

Golden Insulation & Engg. Ltd. v. CIT
305 ITR 427 · High Court
11
citing judgments

A change in the method of accounting cannot be a valid reason for filing a revised return of income under Section 139(5) of the Income-tax Act.

HC) Asianet Satellite Communications Ltd.. (v) DCIT v. Lab India Instruments (P.) Ltd.
93 ITD 120 · 2005 · ITAT
10
citing judgments
Balram Kumar Mahendra v. ITO
21 Taxmann.com 222 · 2012 · High Court
6
citing judgments
Napar Drugs (P) Ltd. v. DCIT
98 ITD 285 · ITAT
5
citing judgments
Deputy Commissioner of Income Tax: 2006 285 ITR 112 (Delhi); (b) ACIT Range 10(1) v. Citicorp Finance India Limited
300 ITR 398 · Reported
3
citing judgments

Judgments on Section 142(2)

Manji Kanji Patel, Mumbai vs. ITO 22(1)(3), Mumbai

Accordingly, we uphold the same and thus these grounds raised by the revenue stands dismissed

ITA 290/MUM/2013[2009-10]Status: DisposedITAT Mumbai02 Apr 2018AY 2009-10

Bench: Shrig. S. Pannu, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 290/Mum/2013 (निर्धारणवर्ा / Assessment Year: 2009-10) Manji Kanji Patel Ito 22(1)(3) Shop No. 4, N. N. R. No. 406, 4Th Floor, बिधम/ Bhaskarchawl, Kajutekri, Towe Rno., 6, Vashi Vs. Ghatkopar (W), Rly Station Complex, Mumbai-400086. Vashi, Navi Mumbai-400705 स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaopp3459N & आयकरअपीलसं./ I.T.A. No. 1872/Mum/2013 (निर्धारणवर्ा / Assessment Year:2009-10) Ito 22(1)(3) Manji Kanji Patel R. No. 406, 4Th Floor, Shop No. 4, N. N. बिधम/ Towerno., 6, Vashi Rly Bhaskarchawl, Station Complex, Vashi, Kajutekri, Vs. Navi Mumbai-400705 Ghatkopar (W), Mumbai-400086. अपीलाथीकीओरसे/ Appellant By : Sh. Kirit R. Purohit प्रत्यथीकीओरसे/Respondentby : Sh. Suman Kumar सुनवाईकीतारीख/ : 09.01.2018 Date Of Hearing घोषणाकीतारीख / : 02.04.2018 Date Of Pronouncement आदेश / O R D E R Per Shri Sandeep Gosain: These Two Cross Appeals Filed By The Assesses As Well As Revenue Are Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-33, Mumbai Dated 04.12.12Foray 2009-10. Since Both The Appeals Arising Out Of The Same Order & 2. Issues Involved Are Common, Therefore, They Have Been Clubbed, Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity. 3. First Of All We Take Up Assessee’S Appeal In Ita No.290/Mum/2013 For Ay 2009-10 For Decision. The Grounds Of Appeal Are Mentioned Herein Below:-

For Appellant: Sh. Kirit R. PurohitFor Respondent: Sh. Suman Kumar
Section 142(2)Section 143(3)Section 68

Pratik Bharat Shah, Mumbai vs. Asstt. CIT, Range- 16(3), Mumbai

ITA 3429/MUM/2014[2009-10]Status: DisposedITAT Mumbai20 Jul 2016AY 2009-10

Bench: S/Shjoginder Singh & Rajendraआयकर आयकर अपील अपील संसंसंसं./I.T.A./3428 /Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Smt. Pratima B. Shah The Acit, Range-16(3) 2Nd Floor, Matru Mandir 194, Gaiwadi Compound, Girgaum Vs. Road,Mumbai-400 004. Mumbai-400 007. Pan:Aafps 3008 R आयकर आयकर अपील अपील संसंसंसं./I.T.A./ 3429/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Shri Pratik Bharat Shah The Acit, Range-16(3) 2Nd Floor, Matru Mandir 194, Gaiwadi Compound, Girgaum Vs. Road,Mumbai-400 004. Mumbai-400 007. Pan:Aagps 1424 C (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Ganesh Bare-Dr Assessee By: S/Shri Vijay Mehta &Anuj Kishnadwala-Ar’S सुनवाई क" तारीख / Date Of Hearing: 25.05.2016 घोषणा क" तारीख / Date Of Pronouncement: 20.07.2016 आयकर आयकर अिधिन यम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर अिधिन अिधिनयम अिधिन यम यम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Orders,Dated 14.2.14,Of The Cit(A)-27,Mumbai The Assessees Have Filed The Above Mentioned Appeals.As The Same Issue-Levy Of Penalty U/S.271(1)(C)(1)(C) Of The Act-Is Involved In Both The Cases & The Assessees Are Members Of The Same Family,So,We Are Adjudicating Both The Appeals By A Single Order.

For Appellant: S/Shri Vijay Mehta &Anuj Kishnadwala-AR’sFor Respondent: Shri Ganesh Bare-DR
Section 139Section 139(1)Section 139(4)Section 142(2)Section 143Section 143(1)Section 143(3)Section 23Section 254(1)Section 271(1)(c)

Pratima B. Shah, Mumbai vs. Asstt. CIT, Range- 16(3), Mumbai

ITA 3428/MUM/2014[2009-10]Status: DisposedITAT Mumbai20 Jul 2016AY 2009-10

Bench: S/Shjoginder Singh & Rajendraआयकर आयकर अपील अपील संसंसंसं./I.T.A./3428 /Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Smt. Pratima B. Shah The Acit, Range-16(3) 2Nd Floor, Matru Mandir 194, Gaiwadi Compound, Girgaum Vs. Road,Mumbai-400 004. Mumbai-400 007. Pan:Aafps 3008 R आयकर आयकर अपील अपील संसंसंसं./I.T.A./ 3429/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Shri Pratik Bharat Shah The Acit, Range-16(3) 2Nd Floor, Matru Mandir 194, Gaiwadi Compound, Girgaum Vs. Road,Mumbai-400 004. Mumbai-400 007. Pan:Aagps 1424 C (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Ganesh Bare-Dr Assessee By: S/Shri Vijay Mehta &Anuj Kishnadwala-Ar’S सुनवाई क" तारीख / Date Of Hearing: 25.05.2016 घोषणा क" तारीख / Date Of Pronouncement: 20.07.2016 आयकर आयकर अिधिन यम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर अिधिन अिधिनयम अिधिन यम यम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Orders,Dated 14.2.14,Of The Cit(A)-27,Mumbai The Assessees Have Filed The Above Mentioned Appeals.As The Same Issue-Levy Of Penalty U/S.271(1)(C)(1)(C) Of The Act-Is Involved In Both The Cases & The Assessees Are Members Of The Same Family,So,We Are Adjudicating Both The Appeals By A Single Order.

For Appellant: S/Shri Vijay Mehta &Anuj Kishnadwala-AR’sFor Respondent: Shri Ganesh Bare-DR
Section 139Section 139(1)Section 139(4)Section 142(2)Section 143Section 143(1)Section 143(3)Section 23Section 254(1)Section 271(1)(c)