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

Uday Vithal Nagpure, Mumbai vs. AO Mumbai, Mumbai

In the result, the appeal of the assesse is dismissed

ITA 2596/MUM/2023[2011-2012]Status: DisposedITAT Mumbai08 Apr 2024AY 2011-2012

Bench: Shri Vikas Awasthy & Shri Amarjit Singhuday Vithal Nagpure, Vs. Assessing Officer, 203, Satguru Sharan-1, Aayakar Bhavan, Marine Chafekar Bandhu Marg, Lines, M.K. Road, Mulund (East) Churchgate Maharashtra - 400081 Maharasthra- 400020 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aecpn2084D Appellant .. Respondent Appellant By : None Respondent By : Smt. Rajeshwari Menon Date Of Hearing 04.04.2024 Date Of Pronouncement 08.04.2024 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assessee In Electronic Mode Is Directed Against The Order Passed By The Ld. Cit(A) For A.Y. 2011-12. The Assessee Has Raised The Following Grounds Before Us: “The Interest Order Which Has Been Issued On Dated 26.12.2018 With Demanding Order/Payment Of Interest Of Rs.63,27,595/- That Simply Not Acceptable. The Following Are Some Reasons Original Assessment Is Simply Done On Assumption Basis Ao Has Not Consider Real Fact Demand Has Been Raised Simply On Returned Amount. Secondary, While Submitting The First Appeal, We Already Paid 20% Of Total Demand, That Also Not Consider While Assessment Of This Interest Order. Already We Have Filed Appeal Before Itat Against Original Assessment Order.” 2. Fact In Brief Is That In The Case Of The Assessee Assessment Was Completed U/S 144 R.W.S 147 Of The Act On 14.12.2018. Subsequently, The Assessing Officer Has Passed Rectification Order U/S 154 Of The Act To Rectify The Error That Interest Charged U/S 234B Was Wrongly Charged

For Appellant: NoneFor Respondent: Smt. Rajeshwari Menon
Section 144Section 154Section 234B

Backbone Tarmet Ng Jv, Ahmedabad vs. The Income-Tax Officer, Ward-5(2)(2), Ahmedabad

The appeal of the assessee is allowed in above terms

ITA 315/AHD/2022[2005-06]Status: DisposedITAT Ahmedabad05 Apr 2024AY 2005-06

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2005-06 Vs. Backbone Tarmet Ng Jv, The Income-Tax Officer, A-9, Kumud Apartment, Ward-5(2)(2), Near Stadium Five Roads, Ahmedabad Navrangpura, Ahmedabad-380009 Pan : Aaaab 3885 F अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sakar Sharma, Ca Revenue By : Shri Vipul Chavda, Sr. Dr सुनवाई की तारीख/Date Of Hearing : 28/03/2024 घोषणा की तारीख /Date Of Pronouncement: 05/04/2024 आदेश/O R D E R Per Annapurna Guptapresent Appeal Has Been Filed By The Assessee Against Order Of The Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As "Cit(A)" For Short] Dated 20.06.2022 Passed Under Section 250 Of The Income-Tax Act, 1961 [Hereinafter Referred To As "The Act" For Short], For The Assessment Year (Ay) 2005-06. 2. Grounds Raised Are As Under :- “1. The Ld. Cit(A)-Nfac Erred On Facts & In Law In Deciding Appeal Ex- Parte Without Appreciating That Business Of The Appellant Has Been Closed Since Covid-19 & Therefore, In Absence Of Any Office, Notice(S) Claimed To Be Have Been Served Through Email Could Not Be Communicated To The Partners Of The Appellant. Without Prejudice To This It Is Submitted That No Notice(S) Came To Be Served On The Appellant At The Designated Email Stated In Form No. 35 For The Purpose Of Service Of Notice(S). Backbone Tarmet Ng Jv Vs. Ito Ay : 2005-06 2

For Appellant: Shri Sakar Sharma, CAFor Respondent: Shri Vipul Chavda, Sr. DR
Section 139(1)Section 143(3)Section 154Section 234BSection 234DSection 250Section 250(6)Section 40