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

Gurudwara Bal Leela Manini Sangal Trust, Patna vs. DCIT, CPC, Bangalore

In the result, appeal of the assessee is allowed for statistical purposes

ITA 10/PAT/2022[2014-15]Status: DisposedITAT Patna21 Mar 2024AY 2014-15

Bench: Shri Sonjoy Sarma, Hon’Blei.T.A. No. 10/Pat/2022 Assessment Year: 2014-15 Gurudwara Bal Leela Manini Sangat Trust National Faceless Appeal Patna Sahib Vs Centre, Delhi Patna City Patna - 800008 [Pan: Aabtg9954E] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri D.V. Pathy, Advocate & Shri Hiresh Karana, Advocate Revenue By : Md. A.H. Chowdhary, Cit D/R सुनवाई क" तारीख/Date Of Hearing : 05/03/2024 घोषणा क" तारीख /Date Of Pronouncement: 21/03/2024 आदेश/O R D E R Per, Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre (Hereinafter The “Ld. Cit(A)”) Dt. 29/12/2021, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2014-15. 2. Though The Assessee Has Raised Eight Grounds Of Appeal But The Grievance Are Two Fold:- (I) The Ld. Cit(A) Erred In Dismissing The Appeal In Limine For Delay Of 1423 Days In Filing Of The Appeal Ignoring The Fact That The Delay Occurred Due To Fault Of The Counsel, Who Had Bona Fide Belief That The Impugned Order Is Rectifiable.

For Appellant: Shri D.V. Pathy, Advocate & Shri Hiresh Karana, AdvocateFor Respondent: Md. A.H. Chowdhary, CIT D/R
Section 12Section 143Section 143(1)Section 154Section 250

Rai Udyog Ltd., Nagpur vs. Income Tax Officer (TDS), Nagpur

In the result, these twin appeals are allowed for statistical purposes

ITA 312/NAG/2022[2014-2015]Status: DisposedITAT Nagpur21 Mar 2024AY 2014-2015

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No. 311 & 312/Nag/2022 निर्धारण वषा / Assessment Year : 2014-15 Rai Udyog Limited 1, Rajat Sankul, Opp. Bus Stand, Ganesh Peth, Nagpur-440018 Pan: Aaccr6008G . . . . . . . अपीलार्थी / Appellant बिधम / V/S Income Tax Officer (Tds) Hq-1 / Joint Commissioner Of Income Tax (Tds), Nagpur . . . . . . . प्रत्यर्थी / Respondent द्वधरध/ Appearances Assessee By : None For The Assessee Revenue By : Mr Abhay Marathe [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 21/03/2024 घोषणा की तारीख / Date Of Pronouncement : 21/03/2024 आदेश/ Order Per G. D. Padmahshali, Am; By These Twin Appeals The Assessee Challenged Against The Din & Order No. Itba/Nfac/S/250/2022-23/1044245542(1) & Itba/Nfac/S/250/2022- 23/1044244849(1) Both Dt. 28/07/2022 Passed U/S 250 Of The Income-Tax Act, 1961 [‘The Act’ Hereinafter] By The National Faceless Appellate Centre [‘Nfac’ Hereinafter] For Assessment Year 2014-15 [‘Ay’ Hereinafter].

For Appellant: None for the AssesseeFor Respondent: Mr Abhay Marathe [‘Ld. DR’]
Section 154Section 194ISection 201(1)Section 24Section 246A(1)(c)Section 250Section 271C

M/S. Rai Udyog Ltd., Nagpur vs. Joint Commissioner of Income Tax (TDS), Nagpur

In the result, these twin appeals are allowed for statistical purposes

ITA 311/NAG/2022[2014-2015]Status: DisposedITAT Nagpur21 Mar 2024AY 2014-2015

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No. 311 & 312/Nag/2022 निर्धारण वषा / Assessment Year : 2014-15 Rai Udyog Limited 1, Rajat Sankul, Opp. Bus Stand, Ganesh Peth, Nagpur-440018 Pan: Aaccr6008G . . . . . . . अपीलार्थी / Appellant बिधम / V/S Income Tax Officer (Tds) Hq-1 / Joint Commissioner Of Income Tax (Tds), Nagpur . . . . . . . प्रत्यर्थी / Respondent द्वधरध/ Appearances Assessee By : None For The Assessee Revenue By : Mr Abhay Marathe [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 21/03/2024 घोषणा की तारीख / Date Of Pronouncement : 21/03/2024 आदेश/ Order Per G. D. Padmahshali, Am; By These Twin Appeals The Assessee Challenged Against The Din & Order No. Itba/Nfac/S/250/2022-23/1044245542(1) & Itba/Nfac/S/250/2022- 23/1044244849(1) Both Dt. 28/07/2022 Passed U/S 250 Of The Income-Tax Act, 1961 [‘The Act’ Hereinafter] By The National Faceless Appellate Centre [‘Nfac’ Hereinafter] For Assessment Year 2014-15 [‘Ay’ Hereinafter].

For Appellant: None for the AssesseeFor Respondent: Mr Abhay Marathe [‘Ld. DR’]
Section 154Section 194ISection 201(1)Section 24Section 246A(1)(c)Section 250Section 271C

Sitaram Agrawal, Saintala vs. ACIT Circle-1(1), Sambalpur

In the result, appeal of the assessee stands partly allowed for statistical purposes

ITA 3/CTK/2024[2017-18]Status: HeardITAT Cuttack20 Mar 2024AY 2017-18

Bench: Before Shri George Mathan, Judicialassessment Year : 2017-18 Sitaram Sitaram Agrawal, Agrawal, At/Po: At/Po: Vs. Acit, Acit, Circle Circle-1(1), Ainthapalli, Sambalpur Ainthapalli, Sambalpur Sambalpur Sambalpur Pan/Gir No. Pan/Gir No.Abbfs 58902 P (Appellant (Appellant) .. ( Respondent Respondent) Assessee By Assessee By : S/Shri Himanshu Jena/Narahari Swain/P.K.Mishra, Himanshu Jena/Narahari Swain/P.K.Mishra, Advs Revenue By : Shri S.C.Mohanty, : Shri S.C.Mohanty, Sr Dr Date Of Hearing : 20/0 03/2024 Date Of Pronouncement : 20/0 /03/2024 O R D E R This Is An Appeal Filed By The Assessee Against The Order Of The Ld This Is An Appeal Filed By The Assessee Against The Order Of The Ld This Is An Appeal Filed By The Assessee Against The Order Of The Ld Cit(A), Nfac, Delhi , Nfac, Delhi Dated 14.11.2023 In Appeal No. In Appeal No. Nfac/2016- 17/1009698 For The Assessment Year 2017-18. 2. S/Shri Himanshu Jena Himanshu Jena/Narahari Swain/P.K.Mishra, A /Narahari Swain/P.K.Mishra, Ars Appeared For The Assessee & Shri S.C.Mohanty, Ld Sr Dr Appeared For The Revenue. The Assessee & Shri S.C.Mohanty, Ld Sr Dr Appeared For The Revenue. The Assessee & Shri S.C.Mohanty, Ld Sr Dr Appeared For The Revenue.

For Appellant: S/Shri Himanshu Jena/Narahari Swain/P.K.MishraFor Respondent: Shri S.C.Mohanty
Section 115Section 115BSection 143(3)Section 154

National Stock Exchange of India Ltd., Mumbai vs. DCIT, Cir-7(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3695/MUM/2023[2016-17]Status: DisposedITAT Mumbai20 Mar 2024AY 2016-17

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.3695/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2016-17) National Stock Exchange Of बिधम/ Dcit-Circle-7(1)(1) India Room No.126, 1St Floor, Vs. Exchange Plaza, Bandra Aayakar Bhavan, M. K. Kurla Complex, Bandra Road, Churchgate, East, Mumbai-400051. Mumbai-400020. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacn1797L (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Shailesh S. Shah Shri Vijay Bhatt Revenue By: Shri S. Srinivasu (Dr) सुनवाई की तारीख / Date Of Hearing: 06/03/2024 घोषणा की तारीख /Date Of Pronouncement: 20/03/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi, Dated 17.08.2023 For Ay. 2016-17. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Upholding The Action Of The Ao Passed U/S 154 Of The Income Tax Act, 1961 (Hereinafter “The Act”) Wherein He Increased The Book Profit U/S 115Jb Of The Act By Making An Adjustment Of Rs.7,61,52,00,000/- [Statutory Contribution Towards Core Settlement Guarantee Fund (Core Sgf)] By Holding That Such A Contribution To Core Sgf Is To Meet An Unascertained Liability.

For Appellant: Shri Shailesh S. ShahFor Respondent: Shri S. Srinivasu (DR)
Section 115JSection 143(3)Section 154Section 37(1)