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

Adi Narayan Gupta, Cuttack vs. DCIT, Central Circle 4(2), Kolkata

In the result, the appeal of assessee dismissed

ITA 35/KOL/2022[2014-15]Status: DisposedITAT Kolkata10 Jun 2022AY 2014-15

Bench: Shri Sanjay Garg & Shri Girish Agrawalassessment Year: 2014-15 Adi Narayan Gupta Deputy Commissioner Of Vs. (Pan:Aaspg3101C) Income Tax, Central Circle- 4(2), Kolkata. (Appellant) (Respondent) Present For: Appellant By : Shri Subhash Agarwal & Siddharth Agarwal, Advocates Respondent By : Smt. Ranu Biswas, Addl. Cit, Dr Date Of Hearing : 06.06.2022 Date Of Pronouncement : 10.06.2022 O R D E R Per Girish Agrawal: This Appeal By The Assessee Is Directed Against The Order Of Ld. Cit(A), Kolkata-21 Appeal No. Itba/Apl/S/250/2021- 22/1037822452(1) Dated 15.12.2021 For A.Y. 2014-15 Passed Against The Assessment Order U/S.154 R.W.S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) By Acit, Central Circle-4(2), Dated 10.03.2017. 2. Grounds Of Appeal Taken By The Assessee Read As Under: “1. For That The Order Passed By The Ld. Cit(A) Nfac On 15-12-2021 Against The Appeal No.Cit(A), Kolkata-21/11201/2016-17 Is Unwarranted, Arbitrary, Invalid & Bad-In-Law, In So Far As They Are Against The Interest Of The Appellant Company. 2. For That The Ld. Commissioner Appeals Erred In Law As Well As In Facts Of The Case By Confirming/Dismissing The Appeal Of The Assessee Against The Additions/Disallowances Made By Ld. Acit Central Circle 4(2), Kolkata, Amounting To Rs.19,50,828/-, Claimed By The Assessee As Expenses On Account Of Interest Paid To Various Loan Creditors. 3. For That The Ld. Commissioner Appeals Erred In Law As Well As In Facts Of The Case By Confirming The Disallowances Of Rs.19,50,828/- Disallowed By Ld. Acit Central Circle 4(2)/Kolkata On The Ground That The Nexus Between

For Appellant: Shri Subhash Agarwal & Siddharth AgarwalFor Respondent: Smt. Ranu Biswas, Addl. CIT, DR
Section 143(3)Section 154Section 57

Smita Dey, Kolkata vs. DCIT, CPC, Bengaluru

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

ITA 20/KOL/2022[2016-17]Status: DisposedITAT Kolkata06 Jun 2022AY 2016-17

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleassessment Year: 2016-17 Smita Dey Dcit, Cpc, Bengaluru 4B, Baishnab Ghata Vs. Road, Kolkata – 700047. Pan: Azrpd 4069 L (Appellant) (Respondent) Present For: Appellant By : Shri Anil Kochar, Advocate & Shri Aryan Kochar, Advocate Respondent By : Shri Biswanath Das, Acit Date Of Hearing : 19.05.2022 Date Of Pronouncement : 06.06.2022 O R D E R Per Sonjoy Sarma, Jm: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 30.09.2021 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “I. That The Ld. Cit(A) Erred In Confirming The Action Of Ld. Asstt. Commissioner (Cpc) In Not Allowing Tax Deducted At Source Of Rs. 4,52,314/- Deducted On Salary Received As An Employee Of M/S. Genpact Mobility Services (P) Ltd. & Deputed To Switzerland During The Work Period Commencing From 25.05.2015 To 31.08.2015 In The Intimation Dated 12.11.2016 Under Section 143(1) Of I.T. Act, 1961. Ii. That Ld. Cit(A) Nfac Has Erred In Law As Well As In Fact In Not Allowing Relief U/S 90/91 Of It Act, 1961 For Tds Deducted At Rs. 4,52,314/- Towards Foreign Salary Income Received In Switzerland. Iii. That Ld. Cit(A) Nfac Has Failed To Appreciate That The Receipt Of Foreign Salary Has Already Been Shown Under Salary Income In Original Return & That As Per The 2 Smita Dey A.Y. 2016-17 Principal Of Natural Law & Justice The Same Income Cannot Be Subjected To Tax Twice I.E. In India As Well As In Switzerland. Iv. For That Further Grounds Of Appeal May Kindly Be Allowed To Be Taken At The Time Of Hearing Of The Appeal.”

For Appellant: Shri Anil Kochar, Advocate &For Respondent: Shri Biswanath Das, ACIT
Section 139(1)Section 139(4)Section 139(5)Section 143(1)Section 154Section 250Section 89Section 89(1)Section 90