You may also use Spatial Join tool (Analysis toolbox - Overlay toolset):
- Target Featueres = manholes
- Join Features = sections
- For the Field Map of Join Features, you can keep the fields you want from the sections and the manholes, and remove other fields.
- Match Option = INTERSECT
You should get a new output with the desired fields. Spatial Join tool combines the processes of selecting by location (you were on the right track), add field, and calculate field in one shot - a powerful tool!
Thanks.