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

Sh. K.Pondurai, Chennai vs. ACIT, Chennai

In the result, the appeal of the assessee is allowed

ITA 2179/CHNY/2026[2012-13]Status: DisposedITAT Chennai29 Jun 2026AY 2012-13

Bench: Honourable Shri Aby T. Varkey & Shri Gagan Goyalआयकर अपील सं./Ita No. 2179/Chny/2026 ननिाारण वर्ा /Assessment Years: 2012-13 Shri K. Pondurai, V. The Assistant Commissioner Of No.3/4-A, Old Mahabalipuram Road, Income Tax, Kelambakkam, Chennai-603 103. Non-Corp Ward-22(1), [Pan: Aaepp8065A] Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee By : Mr. J. Prabhakar, C.A, Ld. Ar प्रत्यर्थी की ओर से /Revenue By : Mr. Chilaka Marthi Vijay Raju, Addl. Cit, Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 18.06.2026 घोषणाकीतारीख /Date Of Pronouncement : 29.06.2026 आदेश / O R D E R Per Gagan Goyal, Am: This Is An Appeal Preferred By The Assessee Against The Order Of Ld. Commissioner Of Income Tax (A), Addl. / Jcit (A)-1, (Hereinafter Referred As The ‘Ld. Cit(A)’) Ahmedabad, Dated 20.02.2026, For The Assessment Year (Hereinafter Referred As The ‘Ay’) 2012-13. Grounds Of Appeal 1. The Learned Jcit (A)-1 Ahmedabad Is Not Justified In Dismissing The Appeal In Limine On The Pretext That The Delay In Filing The Appeal Is On Account Of Alleged Indifference On The Part Of The Appellant. 2. The Learned Jcit (A) Failed To Notice That The Demands Raised Qua The Impugned Intimation Came To His Notice Only On The Basis Of A Recovery Notice Showing Unreconciled Outstanding Demand Framed Allegedly Under Section 143(1) Which Was Not Served Upon Him.

For Appellant: Mr. J. Prabhakar, C.A, Ld. ARFor Respondent: Mr. Chilaka Marthi Vijay Raju
Section 143(1)Section 154Section 234BSection 234C

Uzind Corporation, New Delhi vs. ADIT, Bengaluru

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

ITA 2630/DEL/2026[2019-20]Status: DisposedITAT Delhi29 Jun 2026AY 2019-20

Bench: Shri Mahavir Singh & Shri Manish Agarwaluzind Corporation, Adit, Ii Floor Eros Cinema Cpc, Bengaluru. Building, Jangpura Vs. Extension, New Delhi-110014. Pan-Aaafu1597J (Appellant) (Respondent) Assessee By Ms. Sweeti Kothari, Ca Department By Shri Tarun Sharda, Sr. Dr Date Of Hearing 29/06/2026 Date Of Pronouncement 29/06/2026 O R D E R Per Manish Agarwal, Am: This Appeal Is Filed By The Assessee Against The Order Of Learned Commissioner Of Income Tax (Appeals), Panaji [Ld. Cit(A)] Dated 25.02.2026 U/S 250 Of The Income Tax Act, 1961 (“The Act” In Short) Arising Out Of The Intimation Order Passed U/S 143(1) Of The Act Dated 15.06.2020 For Assessment Year 2019-20. 2. Heard Both The Parties & Perused The Materials Available On Record. It Is Observed That Ld. Cit(A) Has Dismissed The Appeal Of The Assessee By Not Admitting The Same On The Ground Of Limitation U/S 249(3) Of The Act As Per The Ld. Cit(A), The Appeal Was Filed Delayed By 1502 Days & Assessee Has Not Given Any Sufficient & Reasonable Cause For The Delay. It Is Observed That The Intimation Order U/S 143(1) Of Uzind Corporation Vs. Adit The Act Was Issued On 15.06.2020 I.E. During The Period Of Covid-19 Pendamic. Thereafter, The Assessee Has Filed A Rectification Application U/S 154 On 10.05.2022 Before The Cpc Requesting For Correction In The Intimation Order. Since, The Said Petition Has Yet Been Disposed Off, Therefore, The Assessee Has Left With No Other Alternate But To File An Appeal Against The Intimation Order U/S 143(1) Dated 15.062020. Under These Circumstances, The Appeal Was Filed Delayed By 1502 Days Before The Ld. Cit(A).

Section 143(1)Section 154Section 249(3)Section 250