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

Goodwill Tea & Industries Limited, Jalpaiguri, West Bengal vs. ACIT, Circle-1(1), Jalpaiguri

In the result, Appeal of the Assessee is partly allowed for statistical purposes

ITA 682/KOL/2026[2020-21]Status: DisposedITAT Kolkata13 Aug 2026AY 2020-21

Bench: Shri Yogesh Kumar U.S. & Shri Rakesh Mishraassessment Year: 2020-21 Goodwill Tea & Industries Ltd. Vs. Acit, Circle-1(1), Dinbazar, Jalpaiguri Jalpaiguri West Bengal-735101 [Pan: Aabcg1511G] Appellant Respondent Appellant By : Shri Amber Singh Walia, Ar Respondent By : Shri Ujjawal Mandal, Sr. Dr Date Of Hearing : 11.08.2026 Date Of Pronouncement : 13.08.2026 O R D E R Per Yogesh Kumar U.S.: This Appeal Is Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeal) (‘Ld. Cit(A)’ For Short) Dated 12.12.2025, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”, For Short) For The Assessment Year 2020-21. 2. Brief Facts Of The Case Are That, An Intimation Order Came To Be Passed U/S 143(1) Of The Act On 18.12.2021 By The Cpc By Demanding A Sum Of Rs.37,94,190/- On Following Two Adjustments:- (I) Disallowance Of Bonus Paid To Employees Amounting To Rs.1,20,74,572/-. (Ii) Disallowance Of Employees’ Contributions To Provident Fund (Pf) & Employee State Insurance (Esi) Amounting To Rs.16,73,030/- On Account Of Delayed Deposit Under Section 36(1)(Va) Of The Act. Goodwill Tea & Industries Limited; A.Y: 2020-21 Further, Assessee Filed An Application For Rectification U/S 154 Of The Act To Rectify The Error Apparent From Records In The Intimation Issued U/S 143(1) Of The Act. An Order U/S 154 R.W.S. 143(1) Came To Be Passed On 18.12.2023 By The Cpc By Dismissing The Application Filed By The Assessee. Aggrieved By The Order Dated 18.12.2023, Assessee Preferred An Appeal Before The Ld. Cit(A). The Ld. Cit(A) Vide Order Dated 12.12.2025, Dismissed The Appeal Of The Assessee. As Against The Order Of The Ld. Cit(A), Assessee Filed The Present Appeal.

For Appellant: Shri Amber Singh Walia, ARFor Respondent: Shri Ujjawal Mandal, Sr. DR
Section 139(1)Section 143(1)Section 154Section 250Section 36(1)(va)

The Sufiya Educaiton Society Nagaur, Nagaur vs. Ld. AO Exemption, Exemption Jodhpur

In the result, the appeal of the assessee is dismissed as withdrawn

ITA 64/JODH/2025[2020-21]Status: DisposedITAT Jodhpur12 Aug 2026AY 2020-21

Bench: Shri Amit Shukla, Hon’Ble & Shri Girish Agrawal, Hon’Blethe Sufiya Education Society Ld. Ao Exemption 369A, Bichla Bas, Jodhpur Nagaur-341001 Pan No. Aabtt 5359 G Assessee By None Revenue By Prerna Choudhary, Addl. Cit-Dr (Physical) Date Of Hearing 12 / 08 / 2026. Date Of Pronouncement 12 / 08 / 2026. Order Per Bench: The Aforesaid Appeal Has Been Filed By The Assessee Against The Rectification Order Dated 05.01.2024 Passed Under Section 154 Read With Section 143(1) Of The Income-Tax Act, 1961, For The Assessment Year 2020-21. 2. Before Us, The Assessee Has Filed A Written Application Seeking Withdrawal Of The Present Appeal. It Has Been Stated That Subsequently, In The Appellate Proceedings, The Ld. Cit(A), Nfac, Vide Order Dated 04.12.2024, Partly Allowed The Assessee’S Claim & Thereafter, On An Application Filed Under Section 154 Read With Section 250 Of The Act, Passed A Rectification Order Dated 20.03.2025, Whereby The Remaining Amount Of ₹25,24,806/- Was Also Accepted As Having Been 2 Asst. Year: 2020-21 Duly Set Apart For Application. Consequent Thereto, The Jurisdictional Assessing Officer Has Passed The Appeal-Effect Order Dated 15.05.2025 Accepting The Returned Income At Nil & Granting The Consequential Benefit Of Exemption Under Sections 11 & 12 Of The Act.

Section 143(1)Section 154Section 250