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

Pooja Biyani, Surat vs. ITO Ward 1(3)(1), Surat

In the result, the appeal of the assessee is allowed

ITA 468/SRT/2026[2024-2025]Status: DisposedITAT Surat07 Aug 2026AY 2024-2025

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./Ita No. 468/Srt/2026 [ िनधा"रण वष"/Assessment Year: 2024-25 ] Pooja Biyani, Income Tax Officer, 203 Deenbandhu Awas, Opp. Ward 1(3)1, Surat Vs. Amardeep Apptt Nr. Uma Bhavan Aaykar Bhawan, Majuragate, Bhatar Road Surat, Gujarat-395007 Surat, Gujarat 395007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aelpb3036N (Appellant) (Respondent) Appellant By : Shri Rajesh Malani, Ca Respondent By : Shri Ajay Uke, Sr. Dr Date Of Hearing : 14/05/2026 Date Of Pronouncement : 07/08/2026 :: आदेश/Order :: Per, Dr. Arjun Lal Saini, Am: Captioned Appeal Filed By The Assessee, Pertaining To Assessment Year 2024-25, Is Directed Against The Order Passed Under Section 250 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”) By National Faceless Appeal Centre (Nfac), Delhi, Commissioner Of Income Tax (Appeals), Dated 30.01.2026, Which In Turn Arises Out Of An Order Passed By The Assessing Officer Dated 25.07.2025 U/S 154 Of The Income Tax Act, 1961. 2. Grounds Of Appeal Raised By The Assessee Are As Follows: “1. General Ground: The Order Passed By The Hon'Ble Jcit(A) Is Bad In Law & On Facts & Is Liable To Be Quashed. 2. Failure To Adjudicate On Merits: The Hon'Ble Jcit(A) Erred In Dismissing The Appeal Without Adjudicating The Legality Of Denial Of Rebate Under Section 87A & Without Examining The Correctness Of The Order Passed Under Section 154. 3. Misapplication Of Section 154: The Hon'Ble Jcit(A) Erred In Holding That The Issue Is Debatable & Therefore Rectification Under Section 154 Was Not Permissible, Without Appreciating That:

For Appellant: Shri Rajesh Malani, CAFor Respondent: Shri Ajay Uke, Sr. DR
Section 111ASection 143(1)(a)Section 154Section 250Section 87A

Balvantrai Chhotubhai Desai Dungri Vibhag Rupantar A V K S M Limited, Valsad vs. Income Tax Officer, Ward - 1, Valsad

In the result, appeal of the assessee is allowed for as per terms indicated above

ITA 42/SRT/2026[2015-16]Status: DisposedITAT Surat04 Aug 2026AY 2015-16

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./Ita No. 41 & 42/Srt/2026 [ "नधा"रण वष"/Assessment Year: 2011-12 & 2015-16 ] Balvantrai Chhotubhai Desai, Income Tax Officer, Dungri Vibhag Rupantar A V Ward 1, Room No.207, 2Nd Floor, K S M Limited, Income Tax Office, Palak Arcade, Vs. At & Post Dungri, Near Vasan Pali Hill, Santi Nagar, Tithal Road, Valsad, Gujarat-396375 Road, Valsad, Gujarat-396001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaajd0158Q (अपीलाथ"/Assessee) (""यथ"/Respondent) Assessee By : Shri Chaitali Shah, Ca Respondent By : Shri Ajay Uke, Ld. Sr. Dr Date Of Hearing : 12/05/2026 Date Of Pronouncement : 04/08/2026 :: Order :: Per, Dr. Arjun Lal Saini, Am: Captioned Two Appeals Filed By The Same Assessee, Pertaining To Assessment Year 2011-12 & 2015-16, Are Directed Against The Separate Orders Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) By The Commissioner Of Income Tax Appeal, Which In Turn Arise Out Of Separate Assessment Orders Passed By The Central Processing Centre (Cpc) U/S 154/143(1) Of The Act.

For Appellant: Shri Chaitali Shah, CAFor Respondent: Shri Ajay Uke, Ld. Sr. DR
Section 143(1)Section 154Section 250Section 80P