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

Pramode Kumar Himatsingka, L/H of Gita Devi Himatsingka (Since Deceased), Kolkata vs. ITO, Ward 30(1), Kolkata

The appeal of the assessee is allowed

ITA 737/KOL/2025[2018-19]Status: DisposedITAT Kolkata31 Jul 2025AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.737/Kol/2025 Assessment Year: 2018-19 Gita Devi Himatsingka (Since Deceased) Represented By L/H Pramode Kumar Himatsingka…………….………..……..…………………....Appellant 2C, Queens Park, Ballygunge, Kol-19. [Pan: Aarph3735N] Vs. Ito, Ward-30(1), Kolkata…………....…..………………….…..... Respondent Appearances By: Shri Manoj Kataruka, Advocate, Appeared On Behalf Of The Appellant. Shri Ranu Biswas, Acit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : July 30, 2025 Date Of Pronouncing The Order : July 31, 2025 आदेश / Order Per Sonjoy Sarma: This Appeal Has Been Preferred By Shri Pramod Kumar Himatsingka, Legal Heir Of Smt. Geeta Devi Himatsingka (Deceased), Against The Order Of The Ld. Cit(A), Dated 19.02.2025, Confirming The Rectification Order Passed Under Section 154 Of The Income-Tax Act, 1961, Dated 30.10.2019, By The Cpc, Bangalore, For The Assessment Year 2018–19. 2. Brief Facts Of The Case Are That The Assessee Is An Individual Who Filed The Return Of Income For The Assessment Year 2018-19, Declaring A Total Income Of Rs.30,51,986/-. The Return Was Processed Under Section 143(1) Of The Income-Tax Act On 07.12.2018 & A Refund Of Rs.40,800/- Was Determined & Granted To The Assessee. Subsequently, The Cpc Passed A Rectification Order Dated 30.10.19 By

Section 10(35)Section 115BSection 143(1)Section 154

Krypton Industries Limited, Falta vs. DCIT, Circle 1(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1186/KOL/2025[2014-2015]Status: DisposedITAT Kolkata31 Jul 2025AY 2014-2015

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.1186/Kol/2025 Assessment Year: 2014-15 Krypton Industries Ltd.…………………..……..…………………....Appellant Plot 31 & 32, Sector-1, Falta, 24 North Parganas, W.B – 743504. [Pan: Aabck0868N] Vs. Dcit, Circle-1(1), Kolkata……………....…..………………….…..... Respondent Appearances By: Shri Akkal Dudhwewala & Vidhi Ladia, Ar, Appeared On Behalf Of The Appellant. Smt. Ranu Biswas, Addl. Cit- Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : July 31, 2025 Date Of Pronouncing The Order : July 31, 2025 आदेश / Order Per Sonjoy Sarma: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) [Cit(A)], Kolkata, Dated 31.03.2025, Passed Against The Assessment Order Under Section 147/143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2014–15. 2. Brief Facts Of The Case Are That Information Was Received From The Investigation Wing, Kolkata, Indicating That The Assessee-Company Had Taken Bogus Purchases From One Shri Sanjiw Kumar Singh To Reduce Its Taxable Income. A Search Under Section 132 Of The Act Was Conducted On The Said Person & His Statement Was Recorded. Based On The Appraisal Report & Material Found During The Search, It Was Alleged That The Assessee Was One Of The Beneficiaries Of Such Bogus

Section 132Section 143(2)Section 143(3)Section 147Section 148Section 154

Kabiguru Path Bhaban, Kolkata vs. ITO, Exemption, Ward 1(4), Kolkata

In the result, the appeal filed by the assessee is allowed

ITA 1165/KOL/2025[2024-2025]Status: DisposedITAT Kolkata31 Jul 2025AY 2024-2025

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.1165/Kol/2025 Assessment Year: 2024-25 Kobiguru Path Bhaban.………..……..…………………....Appellant 8B Tala, Bhabanath Sen Street, Shyambazar, Kol-4. [Pan: Aaetk0386P] Vs. Ito, Ward-1(4), Kolkata…………....…..………………….…..... Respondent Appearances By: Shri Manish Tiwari, Fca, Appeared On Behalf Of The Appellant. Shri Ranu Biswas, Acit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : July 30, 2025 Date Of Pronouncing The Order : July 31, 2025 आदेश / Order Per Sonjoy Sarma: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Dated 25.03.2025, For The Assessment Year 2024–25, Passed Under Section 250 Of The Income-Tax Act, 1961. 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income For A.Y. 2024–25 On 25.09.2024, Claiming Exemption Under Section 11 Of The Act. It Is Noted That The Audit Report Applicable In The Case Of The Assessee Was Form 10Bb, Which Was Filed On 26.12.2024. The Centralized Processing Centre (Cpc), Bengaluru, Processed The Return Under Section 143(1) Of The Act & Passed An Intimation Order Dated 28.01.2025, Disallowing Exemption Under Section 11, Citing That Form 10Bb Was Not Filed Within The Prescribed Time. Against This, The

Section 11Section 143(1)Section 154Section 250