Section 154 of the Income Tax Act

Income-tax Act, 2025: s.287

Section 154 of the Income-tax Act, 1961 corresponds to section 287 (Rectification of mistake) of the Income-tax Act, 2025.

Read section 287 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 154 is Fatehraj Singhvi v. UOI (73 Taxmann.com 252), cited in 1,778 of the 8,676 judgments on BharatTax that turn on this section.

Leading authorities on Section 154

Fatehraj Singhvi v. UOI
73 Taxmann.com 252 · 2016 · High Court
1,778
citing judgments

Late fees under section 234E are not applicable for periods prior to June 1, 2015, as the amendment to section 200A inserting clause (c) was effective from that date.

Kourani v. Union OF India
83 Taxmann.com 137 · 2017 · High Court
1,708
citing judgments

The fee under Section 234E for late filing of TDS/TCS statements cannot be levied retrospectively by processing an intimation under Section 200A for defaults occurring before the amendment allowing such processing.

CIT v. AIMIL Ltd.
321 ITR 508 · 2010 · High Court
1,629
citing judgments

Employee contributions to PF and ESIC, deposited beyond the due date under the respective Acts but within the due date for filing the income tax return under Section 139(1), are allowable deductions under Section 36(1)(va). Such disallowance cannot be made during processing under Section 143(1).

Fateh Raj Singhvi & Ors. v. UOI
289 CTR 602 · 2016 · High Court
844
citing judgments

A fee under Section 234E cannot be levied or adjusted in an intimation under Section 200A for TDS statements pertaining to periods prior to June 1, 2015, as the enabling amendment to Section 200A(1)(c) came into effect only from that date.

ACIT v. Vireet Investment Pvt. Ltd.
82 Taxmann.com 415 · 2017 · High Court
789
citing judgments

Disallowance computed under Section 14A, read with Rule 8D, cannot be added to book profits under Section 115JB for Minimum Alternate Tax (MAT) purposes. Additionally, for Section 14A disallowance, only investments that yielded exempt income during the year are considered for calculating their average value.

Rashmikant Kundalia v. Union of India
54 Taxmann.com 200 · 2015 · High Court
702
citing judgments

Section 234E, levying late fees for delayed filing of TDS statements under section 200(3), is constitutionally valid and constitutes a compensatory fee, not a punitive penalty. Before treating any person as an assessee-in-default, an opportunity of being heard must be provided.

Godrej & Boyce Manufacturing Company Ltd. v. DCIT
394 ITR 449 · 2017 · Supreme Court
683
citing judgments

Expenditure can only be disallowed under Section 14A if the income is exempt and not part of the total income. The Assessing Officer must first record dissatisfaction with the assessee's accounts or computation before proceeding to make a disallowance under Section 14A or applying Rule 8D.

Olari Little Flower Kuries (P.) Ltd. v. UOI
440 ITR 26 · 2022 · High Court
614
citing judgments

The fee under Section 234E of the Income-tax Act cannot be levied for defaults in filing TDS statements committed prior to June 1, 2015, as the provision for its levy became effective only from that date.

CIT v. Manu Engg
122 ITR 306 · 1980 · High Court
505
citing judgments

When levying a penalty under Section 271(1)(c), the Assessing Officer must clearly specify whether it is for concealment of income or furnishing inaccurate particulars. An ambiguous notice or order using "and/or" for these limbs, or a standard proforma without striking irrelevant clauses, indicates non-application of mind and renders the penalty unsustainable.

ACIT v. Saurashtra Kutch Stock Exchange Ltd.
305 ITR 227 · 2008 · Supreme Court
470
citing judgments

Non-consideration of a decision by a jurisdictional High Court or the Supreme Court constitutes a mistake apparent from the record. However, non-consideration of a non-jurisdictional High Court decision does not typically amount to such a mistake.

Judgments on Section 154

Cheruvathur Foundation, Kochi vs. ACIT, Exemption Circle, Kochi

In the result, the appeal filed by the assessee stands partly allowed

ITA 1063/COCH/2024[2014-15]Status: DisposedITAT Cochin23 Jun 2025AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2014-15 Cheruvathur Foundation .......... Appellant Hig 5, Panampilly Nagar, Kochi 682036 [Pan: Aabtc0724E] Vs. Acit (Exemptions), Kochi .......... Respondent Appellant By: Shri Abraham Joseph Markos, Advocate Respondent By: Smt. Veni Raj, Cit-Dr Date Of Hearing: 20.05.2025 Date Of Pronouncement: 23.06.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeal)-4, Chennai, Dated 23.10.2024 For Assessment Year (Ay) 2014-15. 2. Brief Facts Of The Case Are That The Appellant Is A Charitable Trust Found With The Object Of Imparting Education. It Is Duly Registered U/S. 12A Of The Income Tax Act, 1961 (The Act). The Appellant Trust Filed Return Of Income For 2014-15 On 31.03.2015 Disclosing Nil Income After Claiming Exemption U/S. 11 Of The Act. In 2 Cheruvathur Foundation The Return Of Income The Appellant Claimed The Amount Spent On Acquisition Of Fixed Assets & Repayment Of Loans To Bank As Application Of Income. The Said Return Of Income Was Processed By The Cpc Vide Intimation Dated 16.03.2016 By Making Adjustment Of The Cost Of Fixed Assets Of Rs. 1,25,20.205/- & Repayment Of Loans Of Rs. 4,68,87,408/- By Not Allowing As Application Of Income. Being Aggrieved By The Said Intimation, An Application U/S. 154 Of The Act Was Filed Before The Cpc. The Intimation Was Amended By Allowing The Cost Of Asset As An Application Of Income & Confirmed The Adjustment Of Repayment Of Loan Of Rs. 4,68,87,408/- & Also Not Allowed Carry Forward Of Excess Amount Spent In Earlier Years.

For Appellant: Shri Abraham Joseph Markos, AdvocateFor Respondent: Smt. Veni Raj, CIT-DR
Section 11Section 12ASection 143(1)Section 154