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

Biswarup Samadder, Kolkata vs. ITO, Ward 25(1), Kolkata

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1379/KOL/2025[2020-2021]Status: DisposedITAT Kolkata05 Dec 2025AY 2020-2021

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2020-21 Biswarup Samadder…..……………..………………….……….……….……Appellant 164/A, Bidhan Pally, Garia, Kol-84.. [Pan: Auqps2353G] Vs. Ito, Ward-25(1), Haldia……………...…………………….....……...…..…..Respondent Appearances By: Sanjay Bhattacharaya, Fca, Appeared On Behalf Of The Appellant. Ruchika Sharma, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : November 04, 2025 Date Of Pronouncing The Order : December 05, 2025 Order Per Pradip Kumar Choubey: This Appeal Filed By The Assessee Is Directed Against The Order Dated 14.05.2025 Of The National Faceless Appeal Centre Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2020–21. 2. Brief Facts Of The Case Are That The Assessee Filed His Income Tax Return Declaring Total Income At Rs.4,12,600/- & The Case Of The Assessee Was Selected For Scrutiny For Examining Issue Related To Investment In Immovable Property. During Assessment Proceedings, The Assessing Officer Noticed That The Assessee Was A Developer & Had Executed Development Agreements With Respect To Three Immovable Properties Whose Owners Were Persons Other Than The Assessee & The Agreements Were Got Registered In The Office Of Registering Authority. The Assessing Officer Noticed That The Purchase-Consideration Was Less Than Biswarup Samadder The Value Of Properties Assessed By Stamp Valuation Authority. He, Therefore, Made Addition Of Rs. 1,03,71,727/- U/S 43Ca Of The Act Treating The Difference Between Transfer-Consideration & Value Assessed By Stamp Valuation Authority

Section 250Section 270ASection 43C

Ikab Securitites and Investment Now Known As Mk Ventures Capital Ltd, Mumbai vs. ITO-4(1)(1), Mumabi

In the result, the Assessee’s appeal is allowed for statistical purposes in the above terms

ITA 6483/MUM/2025[2015-16]Status: DisposedITAT Mumbai02 Dec 2025AY 2015-16

Bench: Shri Narender Kumar Choudhry & Ms. Renu Jauhriassessment Year: 2015-16 M/S. Ikab Securities & Income Tax Officer Investment Now Known As 4(1)(2), Mk Ventures Capital Limited, 533, Aayakar Bhavan, Building No.05, 2Nd Floor, Vs. Mumbai - 400020 Raja Bahadur Compound, 43 Tamarind Lane, Fort, Mumbai – 400 001 Pan: Aaaci9007N (Appellant) (Respondent) Present For: Assessee By : Shri Prakash Jotwani, Ld. A.R. Revenue By : Shri Shri Virbhadra S. Mahajan, Ld. Sr. D.R. Date Of Hearing : 02.12.2025 Date Of Pronouncement : 02.12.2025 O R D E R Per: Narender Kumar Choudhry: This Appeal Has Been Preferred By The Assessee Against The Order Dated 27.08.2025, Impugned Herein, Passed By The National Faceless Appeal Center (Nfac)/ Ld. Commissioner Of Income Tax (Appeals) (In Short Ld. Commissioner) U/S 250 Of The Income Tax Act, 1961 (In Short ‘The Act’) For The A.Y. 2015-16. 2. Perusing The Impugned Order, It Clearly Appears That While Deciding The Appeal Filed By The Assessee Against The Order Dt. 28/03/2025 U/S 154 Of The Act By The Assessing Officer, The Ld. Commissioner Has Not Issued Any Notice But Somehow May Be Oversight Or Inadvertently Taken In The 2 M/S. Ikab Securities & Investment Now Known As Mk Ventures Capital Limited Consideration, The Application For Stay Of Demand Dt. 26/05/2025 & Accordingly Disposed Of The Appeal, Without Adjudicating The Appropriate Issues Involved In The 1St Appeal Filed/Pending Before Him. Therefore, This Court Is Inclined To Remand The Instant Case To The File Of The Ld. Commissioner, For Decision Afresh, Suffice To Say By Provided A Reasonable Opportunity Of Being Heard To The Assessee. 3. Thus, The Case Is Accordingly Remanded To The File Of Ld. Commissioner For Decision Afresh.

For Appellant: Shri Prakash Jotwani, Ld. A.RFor Respondent: Shri Shri Virbhadra S. Mahajan, Ld. Sr. D.R
Section 154Section 250