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

S.R. Batliboi & Co. LLP, Kolkata vs. DCIT, Circle - 22, Kolkata

In the result, for statistical purpose, the appeal of assessee is 11

ITA 264/KOL/2016[2006-07]Status: DisposedITAT Kolkata08 Nov 2017AY 2006-07

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year:2006-07 S.R Batliboi & Commission. Llp Dy. Commissioner बनाम / (A Limited Liability Partnership With Of Income Tax, V/S. Llp Identity No. Aab-4294) Circle-22, Kolkata Successor To S.R. Batliboi & Commission. A Partnership Firm Effective 1St April 2013) 22, Camac Street, Kokata-16 [Pan No.Achfs 9180 N] .. अपीलाथ" /Appellant ""यथ" /Respondent Shri Debobrate Ghosh, Fca अपीलाथ" क" ओर से/By Appellant Shri Arindama Bhattacharjee, Dr ""यथ" क" ओर से/By Respondent 04-10-2017 सुनवाई क" तार"ख/Date Of Hearing 08 -11-2017 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per Waseem Ahmed:- This Appeal By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax (Appeals)-6, Kolkata Dated 31.12.2015. Assessment Was Framed By Acit, Circle-54, Kolkata U/S 154 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Vide His Order Dated 06.08.2013 For Assessment Year 2006-07. The Grounds Raised By The Assessee Per Its Appeal Are As Under:- “1. The Learned Commission Of Income Tax (Appeals)-6 [“Cit(A)” For Short]Has Erred On Facts & In Law In Treating The Sum Of Rs.3,20,046 Granted As Interest U/S/. 244A & Included In The Amount Refunded On 28-7-2011 As Refund Out Of Taxes Paid; 2. The Learned Cit(A) Has Erred On Facts & In La In Not Directing The Learned Ao To Compute Interest Allowable Under Section 244A In Accordance With The Express

Section 154Section 244ASection 244A(3)Section 251

Asst CIT 15(1)(1), Mumbai vs. Bayer Cropscience Ltd, Mumbai

In the result, the appeal filed by the Revenue and the cross objection filed by the assessee stands allowed for statistical purposes

ITA 3044/MUM/2015[2004-05]Status: DisposedITAT Mumbai07 Nov 2017AY 2004-05

Bench: Shri Shamim Yahya, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./I.T.A. No. 3044/Mum/2015 ("नधा"रण वष" / Assessment Year: 2004-05) Asst. Cit-15(1)(2), Bayer Croopsciences Ltd. बनाम/ Room No. 403, 4Th Floor, Bayer House, Central Avenue, Aayakar Bhavan, M. K. Road, Hiranandani Gardens, Powai, Vs. Mumbai-400 020 Mumbai-400 076 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacb 9651 K (Revenue) : (Assessee) Co. No. 24/Mum/2017 (Arising Out Of Ita No. 3044/Mum/2015) ("नधा"रण वष" / Assessment Year: 2004-05) बनाम/ Bayer Croopsciences Ltd. Asst. Cit-15(1)(2), Mumbai-400 076 Mumbai-400 020 Vs. (Assessee) : (Revenue) Revenue By : Shri Ram Tiwari : Shri Paras Savla Assessee By Ms. Keerthiga Sharma सुनवाई क" तार"ख / : 11.09.2017 Date Of Hearing घोषणा क" तार"ख / : 07.11.2017 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Revenue & Cross Objection By The Assessee Arises Out Of The Order Of The Commissioner Of Income Tax (Appeals), Mumbai (‘Cit(A)’ For Short) Dated 23.02.2015 & Pertains To The Assessment Year (A.Y.) 2004-05. 2

For Respondent: Shri Ram Tiwari
Section 10(34)Section 143Section 147Section 154Section 220Section 234B