Inquiry before assessment
Section 142 of the Income-tax Act, 1961 deals with inquiry before assessment. For the purpose of making an assessment under this Act, the Assessing Officer may serve on any person who has made a return under section 115WD or section 139 or in whose case the time allowed under sub-section (1) of section 139 for furnishing the return has expired a notice requiring him, on a dat The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
(1) For the purpose of making an assessment under this Act, the Assessing Officer may serve on any person who has made a return under section 115WD or section 139 or in whose case the time allowed under sub-section (1) of section 139 for furnishing the return has expired a notice requiring him, on a date to be therein specified,—
(i) where such person has not made a return within the time allowed under sub-section (1) of section 139 or before the end of the relevant assessment year, to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, or :
Provided that where any notice has been served under this sub-section for the purposes of this clause after the end of the relevant assessment year commencing on or after the 1st day of April, 1990 to a person who has not made a return within the time allowed under sub-section (1) of section 139 or before the end of the relevant assessment year, any such notice issued to him shall be deemed to have been served in accordance with the provisions of this sub-section:
Provided further that a notice under this sub-section for the purposes of this clause may also be served by the prescribed income-tax authority, (ii) to produce, or cause to be produced, such accounts or documents as the Assessing Officer may require, or (iii) to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the assessee, whether included in the accounts or not) as the Assessing Officer may require :
Provided that—
(a) the previous approval of the Joint Commissioner shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts;
(b) the Assessing Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.
(2) For the purpose of obtaining full information in respect of the income or loss of any person, the Assessing Officer may make such inquiry as he considers necessary. (2A) If, at any stage of the proceedings before him, the Assessing Officer, having regard to the nature and complexity of the accounts, volume of the accounts, doubts about the correctness of the accounts, multiplicity of transactions in the accounts or specialised nature of business activity of the assessee, and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, direct the assessee to get either or both of the following, namely:—
(i) to get the accounts audited by an accountant, as defined in the Explanation below sub-section (2) of section 288, nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in this behalf and to furnish a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars, as may be prescribed, and such other particulars as the Assessing Officer may require;
(ii) to get the inventory valued by a cost accountant, nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in this behalf and to furnish a report of such inventory valuation in the prescribed form duly signed and verified by such cost accountant and setting forth such particulars, as may be prescribed, and such other particulars as the Assessing Officer may require:
Provided that the Assessing Officer shall not direct the assessee to get the accounts so audited or inventory so valued unless the assessee has been given a reasonable opportunity of being heard. (2B) The provisions of sub-section (2A) shall have effect notwithstanding that the accounts of the assessee have been audited under any other law for the time being in force or otherwise. (2C) Every report under sub-section (2A) shall be furnished by the assessee to the Assessing Officer within such period as may be specified by the Assessing Officer:
Provided that the Assessing Officer may, suo motu, or on an application made in this behalf by the assessee and for any good and sufficient reason, extend the said period by such further period or periods as he thinks fit; so, however, that the aggregate of the period originally fixed and the period or periods so extended shall not, in any case, exceed one hundred and eighty days from the date on which the direction under sub-section (2A) is received by the assessee. (2D) The expenses of, and incidental to, any audit or inventory valuation under sub-section (2A) (including the remuneration of the accountant or the cost accountant, as the case may be)] shall be determined by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner (which determination shall be final) and paid by the assessee and in default of such payment, shall be recoverable from the assessee in the manner provided in Chapter XVII-D for the recovery of arrears of tax :
Provided that where any direction for audit or inventory valuation under sub-section (2A) is issued by the Assessing Officer on or after the 1st day of June, 2007, the expenses of, and incidental to, such audit or inventory valuation (including the remuneration of the accountant or the cost accountant, as the case may be) shall be determined by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in accordance with such guidelines as may be prescribed and the expenses so determined shall be paid by the Central Government.
(3) The assessee shall, except where the assessment is made under section 144, be given an opportunity of being heard in respect of any material gathered on the basis of any inquiry under sub-section (2) or any audit or inventory valuation under sub-section (2A) and proposed to be utilised for the purposes of the assessment.
(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.
Explanation.––For the purposes of this section, "cost accountant" means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who holds a valid certificate of practice under sub-section (1) of section 6 of the said Act.
Estimation of value of assets by Valuation Officer.
Section 142, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
INCOME-TAX-ACT-2025 268 Inquiry before assessment Official correspondence
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 42
- Finance Act s. 36 Amendment of section 142
- Finance Act s. 34 Insertion of new section 142A
- Finance Act s. 44 Amendment of section 142
- Finance Act s. 35 Amendment of section 142
- Finance Act s. 46 Amendment of section 142
- Finance Act s. 31 Amendment of section 142
- Finance Act s. 37 Amendment of section 142
- Finance Act s. 38 Amendment of section 142
- Finance Act s. 71 Amendment of section 142
- s. 115JB Special provision for payment of tax by certain companies
- s. 115WF Best judgment assessment
- s. 124 Jurisdiction of Assessing Officers
and 30 more
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Principal Commissioner of Income Tax vs Gahoi Foods Pvt. LTD
Court's Decision & Legal Precedent
In a case where a search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961 has been conducted, the Assessing Officer assumes jurisdiction to assess or reassess the total income under Section 153A only for: (a) all pending assessments/reassessments which shall stand abated and be assessed afresh as a unified assessment for the six preceding assessment years; and (b) completed/unabated assessments, only if and to the extent incriminating material relating to those assessment years is found or unearthed during the search or requisition. In the absence of incriminating material being found during search in respect of any completed/unabated assessment within the six-year block period, the Assessing Officer cannot assess or reassess the total income taking into consideration other material available on record, but the completed assessments remain binding, subject to the Revenue's preserved right to initiate reassessment proceedings under Sections 147/148 of the Act, subject to fulfilment of the statutory conditions specified therein.
On this section: Power to issue notice to assessee
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Pr. Commissioner of Income Tax vs Gahoi Food Pvt. LTD
Court's Decision & Legal Precedent
In case of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961, the Assessing Officer assumes jurisdiction for block assessment under Section 153A for six assessment years. While all pending assessments/reassessments for those years stand abated and can be reassessed for total income including all available material, in respect of completed/unabated assessments, the Assessing Officer can make an addition or reassessment only if incriminating material related to that issue has been found and unearthed during the search. In the absence of any incriminating material being unearthed during the search, the Assessing Officer cannot assess or reassess taking into consideration other material in respect of completed/unabated assessments. However, the completed/unabated assessments can be reopened by the Assessing Officer in exercise of powers under Sections 147/148 of the Act, subject to fulfillment of the conditions as envisaged under those sections.
On this section: Power to call for information and documents from assessee
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Dayawanti through Smt. Sunita Gupta (legal Heir) vs Commissioner of Income Tax
Court's Decision & Legal Precedent
In case of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961: (i) All pending assessments/reassessments shall abate and merge into assessment under Section 153A, permitting Assessing Officer to assess 'total income' for the entire six assessment years; (ii) In respect of abated/pending assessments, the AO can assess total income incorporating both disclosed income and undisclosed income found during search or available from other sources; (iii) However, in respect of completed/unabated assessments where no assessment was pending at the date of search initiation, the AO can only assess or reassess by reopening such assessment when incriminating material is found relating to that specific assessment year; (iv) Where no incriminating material whatsoever is found during the search for a particular assessment year, the AO cannot assess or reassess a completed assessment for that year under Section 153A, and the completed assessment remains final and protected; (v) In such cases, the Revenue's only remedy is to resort to reassessment under Sections 147/148, subject to fulfillment of the conditions stated therein, and these powers are expressly saved; (vi) The assessment under Section 153A is fundamentally linked to the search or requisition under Sections 132/132A, and its object is to bring to tax undisclosed income detected through such search - foundation for Section 153A assessment is the existence of incriminating material.
On this section: Power of Assessment Officer to seek information and documents from assessee; procedure for notice issuance
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Pr Commissioner of Income Tax (c) 1 vs Rehab Housing PVT LTD
Court's Decision & Legal Precedent
In case of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961, the Assessing Officer assumes jurisdiction for block assessment under Section 153A. All pending assessments/reassessments shall stand abated. In case any incriminating material is found/unearthed during the search, even in case of unabated/completed assessments, the Assessing Officer would assume jurisdiction to assess or reassess the total income taking into consideration the incriminating material unearthed during the search and other material available with the Assessing Officer including income declared in returns. However, in case no incriminating material is unearthed during the search, the Assessing Officer cannot assess or reassess taking into consideration other material in respect of completed assessments/unabated assessments. Therefore, in respect of completed/unabated assessments, no addition can be made by the Assessing Officer in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act, 1961. The completed/unabated assessments can be re-opened by the Assessing Officer in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned under Sections 147/148.
On this section: Power to call for information and explanation - cited as mechanism for AO to collect information
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Pr Commissioner of Income Tax (c) 1 vs Rehab Housing PVT LTD through Its Md
Court's Decision & Legal Precedent
In Case Of Search Under Section 132 Or Requisition Under Section 132A, The Assessing Officer Assumes Jurisdiction For Block Assessment Under Section 153A For Six Assessment Years. While All Pending Assessments/Reassessments Shall Stand Abated, In Case Of Completed/Unabated Assessments, The Assessing Officer Can Only Assess Or Reassess The Total Income Taking Into Consideration Incriminating Material Unearthed During The Search And Other Material Available. In Case No Incriminating Material Is Unearthed During The Search, The Assessing Officer Cannot Assess Or Reassess Taking Into Consideration Other Material In Respect Of Completed/Unabated Assessments. The Assessment Under Section 153A Is Inextricably Linked With The Search And Requisition Under Sections 132 And 132A, And The Object Is To Bring Under Tax The Undisclosed Income Which Is Found During The Course Of Search Or Pursuant To Search Or Requisition. Only In Cases Where Undisclosed Income Is Found Based On Incriminating Material, The Assessing Officer Assumes Jurisdiction To Assess Or Reassess Total Income For The Entire Six-Year Block Assessment Period Even In Case Of Completed/Unabated Assessments.
On this section: Cited By Revenue As Information Gathering Tool; Also Referenced In Context Of Assessment Procedure Under Section 153A
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Common Cause A Regd. Society vs U. O. I.
Court's Decision & Legal Precedent
Political parties are under mandatory statutory obligation to file returns of income for each assessment year in accordance with Income Tax Act provisions. A political party that has not maintained audited and authenticated accounts and has not filed returns of income for the relevant period cannot ordinarily be permitted to claim that expenditure was incurred or authorized by the party in connection with election of candidates. Expenditure in connection with election of a candidate shall be presumed to have been authorized by the candidate or election agent, but the candidate may rebut this presumption by proving that the expenditure was in fact incurred by the political party or other association or body of persons or individual, and such proof must be based on proper audited accounts maintained in accordance with Section 13A of Income Tax Act. The Election Commission has power under Article 324 of the Constitution to issue directions requiring political parties to submit details of expenditure incurred or authorized in connection with elections for the Commission's scrutiny.
On this section: Cited to establish that Assessing Officer can serve notice requiring person to furnish return of income or produce accounts or documents. Court noted notices were issued but not complied with.
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Habitat Shelters Pvt. Ltd. v. Pr. CIT
Court's Decision & Legal Precedent
Writ against s.142(2A) special audit dismissed: AO reasons on complex multi-project real-estate accounting were relevant; objections considered; court will not re-weigh sufficiency. Body dated 12th February 2018 matches Final Order 2018-02-12 (order-1.pdf).
On this section: Complementary s.142(2A) writ upholding special audit for complex accounts.
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Neesa Leisure Ltd. v. DCIT Central Circle
Court's Decision & Legal Precedent
Challenge to s.142(2A) special-audit direction dismissed: proviso requires reasonable opportunity of being heard, but personal hearing is not mandatory where written show-cause and consideration of objections suffice; complexity/interest-of-revenue conditions were met post-search. Oral Judgment 9 May 2013 ≈ Final Order 2013-05-09 (order-1.pdf).
On this section: Leading Gujarat HC teaching on special-audit natural justice under s.142(2A).
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Hence, from this date and onwards, the Assessing Officer shall also have power to extend the period of furnishing of audit report suo motu. " 11 The Notes on clauses to the Finance Bill, 2008 contain the following explanation: "Clause 28 seeks to amend section 142 of the Income-tax Act, which relates to enquiry before assessment. Sub-sections (2A) to (2D) of the said section deal with power of Assessing Officer to order special audit, where the nature and complexity of the accounts requires such audit, to seek the assistance of a chartered accountant. Sub-section (2C) …
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… Hence, from this date and onwards, the Assessing Officer shall also have power to extend the period of furnishing of audit report suo motu. " 11 The Notes on clauses to the Finance Bill, 2008 contain the following explanation: "Clause 28 seeks to amend section 142 of the Income-tax Act, which relates to enquiry before assessment. Sub-sections (2A) to (2D) of the said section deal with power of Assessing Officer to order special audit, where the nature and complexity of the accounts requires such audit, to seek the assistance of a chartered accountant. Sub-section (2C) …
Questions about Section 142
What have the courts held on Section 142 of the Income-tax Act?
Principal Commissioner of Income Tax vs Gahoi Foods Pvt. LTD (24 Apr 2023) is the leading judgment on this section among those set out below: Power to issue notice to assessee. Another 7 judgments on this section are set out below, 6 of them from the Supreme Court. They run from 1996 to 2023.
How do I find court cases under Section 142 of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 142, section 142 Income Tax Act, section 142 of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 8 reported judgments on this section are set out on this page, beginning with Principal Commissioner of Income Tax vs Gahoi Foods Pvt. LTD (24 Apr 2023).
What should I read with Section 142 of the Income-tax Act, and has it changed?
Its own text turns on section 115WD (Return of fringe benefits), section 139 (Return of income), section 144 (Best judgment assessment), section 288 (Appearance by authorised representative), so none of them can safely be read on its own. 42 other provisions in this corpus refer back to it. For anything done on or after 1 April 2026 the provision to read is Income-tax Act, 2025, section 268 (Inquiry before assessment), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 142 of the Income-tax Act come into force?
Section 142 of the Income-tax Act, cited as Income Tax Act 142, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.