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

Kuldeep Singh, Chandigarh vs. Income Tax Officer Ward 5(5), Chnadigarh

The appeal stand dismissed as infructuous

ITA 1051/CHANDI/2024[2021-22]Status: DisposedITAT Chandigarh20 May 2025AY 2021-22

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No. 1051/Chandi/2024 (िनधा"रणवष" / Assessment Year: 2021-22) Shri Kuldeep Singh Ito Ward No 5(5) बनाम/ H.No 34-D Sector 30B Aaykar Bhawan Sector 178 Vs. Chandigarh 160030 Chandigarh 160017 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Afdps-0430-C (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Ajay Jain (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Shri Vivek Vardhan (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 23-04-2025 घोषणाकीतारीख /Date Of Pronouncement : 20-05-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. This Appeal Was Heard On 23-04-2025 On The Issue Of Deduction U/S 10(10B) As Claimed By The Assessee For Rs.28.23 Lacs Which Was Restricted To Rs.5 Lacs By Lower Authorities. The Impugned Amount Was Received By The Assessee Upon Transfer From Dot, Govt. Of India To Bsnl With Effect From 01-01-2000. The Assessee Claimed That It Was Retrenchment Compensation But Ld. Cit(A) Held That It Was Case Of Voluntary Retirement. 2. The Ld. Ar, Subsequently, Placed On Record Rectification Order Passed By Nfac U/S 154 R.W.S. 250 Of The Act On 12-11-2024 Wherein

For Appellant: Shri Ajay Jain (CA) – Ld. ARFor Respondent: Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR
Section 10Section 154

Eveline International, Ludhiana vs. Deputy Commissioner of Income Tax, Circle-4, Ludhiana

The appeal stand allowed for statistical purposes

ITA 942/CHANDI/2024[2021-22]Status: DisposedITAT Chandigarh16 May 2025AY 2021-22

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No.942/Chandi/2024 (िनधा"रणवष" / Assessment Year: 2021-22) M/S Everline International Dcit Circle-4 G.T.Road Aaykar Bhawan बनाम/ Vs. Ludhiana-141014 Rishi Nagar Ludhiana-141001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaafe-3412-C (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Sh. Ashwani Kumar (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Sh. Vivek Vardhan (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 14-05-2025 घोषणाकीतारीख /Date Of Pronouncement : 16-05-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2021-22 Arises Out Of An Order Of Learned Addl. / Joint Commissioner Of Income Tax (Appeals), Jaipur [Cit(A)] Dated 09-07-2024 In The Matter Of An Intimation Issued By Cpc U/S 143(1) On 30-09-2022 Adding Back Profit On Foreign Exchange Rate For Rs.8.87 Lacs As Reported By Tax Auditor In The Tax Audit Report. The Ld. Cit(A) Did Not Admit The Appeal For Want Of Condonation Of Delay Of 48 Days. The Ld. Ar Stated That The Adjustment Has Happened Due To Incorrect Reporting In Tax Audit

For Appellant: Sh. Ashwani Kumar (CA) – Ld. ARFor Respondent: Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR
Section 143(1)Section 154

Kuldeep Singh, Ludhiana vs. ITO Ward (3) (1), Ludhiana

In the result, the appeal stand dismissed

ITA 717/CHANDI/2024[2018-19]Status: DisposedITAT Chandigarh16 May 2025AY 2018-19

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No. 717/Chandi/2024 (िनधा"रणवष" / Assessment Year: 2018-19) Shri Kuldeep Singh Ito Ward No (3)(1) बनाम/ 33F Jmd Mall Opp. Railway Station Aayakar Bhawan Vs. Punjab 141001 Rishi Nagar, Punjab. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Bchps-1635-R (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : None ""थ"कीओरसे/Respondent By : Sh. Vivek Vardhan (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 24-04-2025 घोषणाकीतारीख /Date Of Pronouncement : 16-05-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2018-19 Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] Dated 22-04-2024 In The Matter Of An Rectification Intimation Issued By Cpc U/S 154 Of The Act On 21-06-2023. At The Time Of Hearing, None Appeared For Assessee. Left With No Option, The Appeal Was Heard With The Able Assistance Of Ld. Sr. Dr Who Stated That The Issue Stood Squarely Covered Against The Assessee By The Decision Of Hon’Ble Apex Court.

For Appellant: NoneFor Respondent: Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR
Section 143(1)Section 154Section 2(24)(x)Section 36(1)(iv)Section 36(1)(va)Section 43B