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

Kanya Gurukul Shiksha Samiti, Nilokheri vs. Income Tax Officer (Exemption), Ambala

The appeal stand dismissed as withdrawn

ITA 1/CHANDI/2025[2021-2022]Status: DisposedITAT Chandigarh02 Jun 2025AY 2021-2022

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No. 1/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2021-22) Kanya Gurukul Shiksha Samiti Ito (Exemption) बनाम/ Anjanthali Nilokheri Aaykar Bhawan 2Nd Floor B. C. Bazaar Haryana132021 Vs. Ambala Cantt-133001 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaffk-8836-M (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/Appellant By : Shri S. B. Gupta (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Shri Vivek Vardhan (Addl. Cit) - Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 22-05-2025 घोषणाकीतारीख /Date Of Pronouncement : 02-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. During Hearing Of Captioned Appeal, It Transpires That The Return Of Income As Filed By The Assessee Was Initially Processed U/S 143(1). The Assessee Filed Rectification U/S 154 Which Was Disposed-Off By Cpc On 15-12-2022. The Assessee Preferred First Appeal Against This Order Which Was Disposed-Off Vide Order Dated 09-09-2024 Wherein Ld. Ao Was Directed To Allow Certain Expenditure. In The Set-Aside Proceedings, Ld. Ao Re-Determined Income Of Rs.19.49 Lacs Vide Order Dated 06-11-2024. Against This Order, The Assessee Has Filed

For Appellant: Shri S. B. Gupta (Advocate) – Ld. ARFor Respondent: Shri Vivek Vardhan (Addl. CIT) - Ld. Sr. DR
Section 143(1)Section 154

Sgj Enterprises Private Limited, Patiala vs. DCIT, Circle, Patiala

In the result, the appeal was dismissed against which the assessee is in further appeal before us

ITA 645/CHANDI/2024[2020-21]Status: DisposedITAT Chandigarh02 Jun 2025AY 2020-21

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No. 645/Chandi/2024 (िनधा"रणवष" / Assessment Year: 2020-21) M/S Sgj Enterprises Private Limited Dcit-Circle Patiala बनाम/ D-197 Focal Point Aaykar Bhawan Vs. Patiala 147001 Patiala "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aancs-8860-N (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Parikshit Aggarwal (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 22-05-2025 घोषणाकीतारीख /Date Of Pronouncement : 02-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2020- 21 Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals), National Fearless Appeals Centre Delhi [Cit(A)] Dated 22- 12-2023 In The Matter Of Rectification Intimation Issued By Cpc U/S 154 Of The Act On 21-06-2022. The Sole Grievance Of The Assessee Is Application Of Correct Rate Of Tax. Having Heard Rival Submissions & Upon Perusal Of Case Records, The Appeal Is Disposed-Off As Under. The Registry Has Noted Delay Of 93 Days In The Appeal Which Stands Condoned.

For Appellant: Shri Parikshit Aggarwal (CA) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR
Section 115BSection 143(1)Section 154

Sahil Jain B-Xix, 431/I-D, College Road, Civil Lines, Ludhiana vs. Income Tax Officer Ward-7(1), Ludhiana

The appeal stand partly allowed

ITA 1243/CHANDI/2024[2017-2018]Status: DisposedITAT Chandigarh02 Jun 2025AY 2017-2018

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No.1243/Chandi/2024 (िनधा"रणवष" / Assessment Year: 2017-18) Shri Sahil Jain Ito B-Xix 431/I-D Ward- 7(1) बनाम/ Vs. College Road, Civil Lines Ludhiana. Ludhiana "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ahqpj-5954-M (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ : Shri Kushal Chopra (Ca) For Shri Sudhir Sehgal (Advocate) – Ld. Ar Appellant By ""थ"कीओरसे/Respondent : Dr. Ranjit Kaur (Addl. Cit) – Ld. Sr. Dr By सुनवाईकीतारीख/Date Of Hearing : 21-05-2025 घोषणाकीतारीख /Date Of Pronouncement : 02-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2017-18 Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] Dated 26-11-2024 In The Matter Of Rectification Order Passed By Cpc U/S 154 On 18-02-2020. The Assessee Is Aggrieved By Adjustment Of Rs.8.27 Lacs As Made By Cpc. Having Heard Rival Submissions & Upon Perusal Of Case Records, The Appeal Is Disposed-Off As Under.

For Respondent: Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR by
Section 154Section 80C