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

M/S Pandit Electricals Pvt. Ltd., Kolkata vs. Income Tax Officer, Ward - 3(3), Chandauli

In the result, the appeal of the assessee is dismissed

ITA 19/VNS/2021[2012-2013]Status: DisposedITAT Varanasi16 Apr 2026AY 2012-2013

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y.-2012-13 M/S Pandit Electricals Pvt. Ltd., Vs. The Income Tax Officer, 173, Madhyam Gram, South Ward-3(3), Chandauli Bireshpally, Near Vivekananda Sporting Club, Kolkata Pan: Aadcp8298D (Appellant) (Respondent) Assessee By: Sh. Bipin Shankar Gupta, Advocate Revenue By: Sh. Sabyasachi Chakarborty, Sr. Dr Date Of Hearing: 20.01.2026 Date Of Pronouncement: 16.04.2026 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Order Of The Ld. Cit(A), Varanasi, Dated 18.09.2018, Wherein The Ld. Cit(A) Has Dismissed The Appeal Of The Assessee Against The Orders Passed By The Ao Under Section 154 Of The Income Tax Act, 1961, Dated 24.05.2017. The Grounds Of Appeal Are As Under:- “1. Because Keeping In View The Facts & Circumstances, The Learned Cit (Appeals) Has Eared In Law As Well As On Facts In Upholding The Illegal Order Passed By The A O U/S 154 Of The Act. 2. Because Keeping In View The Facts & Circumstances, The Learned Appellate Authority Has Failed To Appreciate That There Was No Mistake Apparent On The Face Of Record So As To Justify The Action Of The A O U/S 154 Of The Act & The Provisions Of Section 40(A)(Ia)Of The Act Is Not Applicable To The Case. 3. Because The Learned Appellate Authority Has Eared In Not Appreciating The Direct Findings Of Learned Jurisdictional Ald. H. C In Cit Vs. Vector Shipping Services (P) Ltd. & Also Circular No. 10/Dv/2013[F.No.279/Misc/M- 61/2012-Itj(Ii)], Dated 16.12.2013 Issued By Cbdt Clarifying That Applicability Of Sec. 40(A)(Ia) Of The Act Has Conflicting Interpretations By Judicial Authorities & Hence Out Of Purview Of Sec. 154 Of The Act.

For Appellant: Sh. Bipin Shankar Gupta, AdvocateFor Respondent: Sh. Sabyasachi Chakarborty, Sr. DR
Section 154Section 40

Sameer Satish Satpute, Pune vs. Income Tax Officer, (It) Ward 4, Pune, B.O. Bhawan

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

ITA 2933/PUN/2025[2022-23]Status: DisposedITAT Pune10 Apr 2026AY 2022-23

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita No.2933/Pun/2025 धििाारण वर्ा / Assessment Year : 2022-23 Sameer Satish Satpute, Ito, (It) Ward 4, Pune 39, Rakshak Society, Aundh, Pune-411027 Vs. Pan : Asops4608L अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee By : Shri Kishor B Phadke Department By : Shri Harshit Bari Date Of Hearing : 25-02-2026 Date Of 10-04-2026 Pronouncement : आदेश / Order Per Astha Chandra, Jm : The Appeal Filed By The Assessee Is Directed Against The Order Dated 04.09.2025 Of The Ld. Commissioner Of Income Tax (Appeals), Pune-13 [“Cit(A)”] Pertaining To Assessment Year (“Ay”) 2022-23. 2. Briefly Stated, The Facts Of The Case Are That The Assessee Is A Non- Resident Individual. During Fy 2021-22 Relevant To Ay 2022-23 Under Consideration, The Taxable Income Of The Assessee In India Comprised Of : (I) Rental Income From House Property In Pune; (Ii) Capital Gains From Stocks & Mutual Funds; (Iii) Dividend Income; (Iv) Fixed Deposits & (V) Nro Account Interest & Pass Through Income From Two Funds. For Ay 2022- 23, The Assessee Filed His Return Of Income U/S 139(1) Of The Income Tax Act, 1961 (The “Act”) On 30.07.2022 Claiming Refund Of Rs.3,62,090/-. The Return Of The Assessee Was Processed By The Cpc, Bengaluru U/S 143(1) Of The Act Vide Intimation Order Dated 06.10.2023 Wherein The Ld. Cpc Assessed The Total Income Of The Assessee At Rs.5,37,30,540/- & Raised A Tax Demand Of Rs.35,68,200/-. On Going Through The Intimation, The Assessee Noticed That Though Gross Total Income Was Accepted, Income Adopted As Chargeable At Special Rate Was Incorrect. As Per The Order Of 2

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Harshit Bari
Section 115BSection 139(1)Section 143(1)Section 154