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

Advance Lifespaces Private Limited, Ahmedabad vs. ACIT, Circle 1(1)(1), Ahmedabad

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

ITA 411/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad28 Jul 2025AY 2017-18

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaassessment Year: 2017-18 Advance Lifespaces Pvt. Ltd., Assistant Commissioner Of S-202/B/4/205, City Centre, Income Tax, Vs Nr. Idgah Gate, Asarwa, Circle-1(1)(1), Ahmedabad-380016 Ahmedabad [Pan No.:Aajca2338M] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Appellant By : Shri P. D. Shah, Ar & Shri Saiyam Shah, Ar Respondent By : Shri B.P. Srivastava, Sr. Dr सुनवाई की तारीख/Date Of Hearing: 22.07.2025 घोषणा की तारीख /Date Of Pronouncement: 28.07.2025 आदेश/O R D E R Per T.R. Senthil Kumar: This Appeal Is Filed By The Assessee Against The Appellate Order Dated 03.07.2024 Passed By Ld. Commissioner Of Income Tax (Appeals) (Hereinafter Referred To As “Ld. Cit(A)”), National Faceless Appeal Centre (In Short “Nfac”), Delhi Arising Out Of The Rectification Order Passed Under Section 154 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”) Relating To The Assessment Year 2017-18. 2. The Registry Has Noted That There Is A Delay Of 145 Days In Filing The Present Appeal. The Assessee Explained Vide Notarized Affidavit Stated Originally The Appeal Was Filed By The Assessee By Paying Appropriate Fees On 30.08.2024 By E-Filing. However, There Is Some Mistakes In Form No. 36 Which Was Required To Be Rectified, The Same Was Rectified & Filed On 21.02.2025 Thereby The Registry Has Noted That There Is A Delay Of 145 Days. In View A.Y. 2017-18. 2 Of The Explanation Offered By The Assessee, The Delay Of 145 Days In Filing Of The Above Is Hereby Condoned.

For Appellant: Shri P. D. Shah, AR & Shri Saiyam Shah, ARFor Respondent: Shri B.P. Srivastava, Sr. DR
Section 143(3)Section 145(3)Section 154

V.C. Medical, Educational and Charitable Trust, Palani vs. ITO, Ward-1, Dindigul

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

ITA 1114/CHNY/2025[2021-22]Status: DisposedITAT Chennai25 Jul 2025AY 2021-22

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. No.1114/Chny/2025 िनधा"रण वष"/Assessment Year: 2021-22 V.C. Medical, Educational & Vs. The Income Tax Officer, Charitable Trust, 72-B, Dindugal Ward 1, Road, Palani 624 601. Dindigul. [Pan:Aaatv4282H] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri T.S. Lakshmi Venkataraman, F.C.A. ""थ" की ओर से/Respondent By : Ms. R. Anita, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 03.07.2025 घोषणा की तारीख /Date Of Pronouncement : 25.07.2025 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 10.01.2025 Passed By The Addl/Jcit(A)-3, Mumbai For The Assessment Year 2021-22. 2. We Find That This Appeal Is Filed With A Delay Of 21 Days. The Assessee Filed An Affidavit For Condonation Of Delay Stating The Reasons. Upon Hearing Both The Parties & On Examination Of The Said Affidavit, We Find The Reasons Stated By The Assessee Are Bonafide, Which Really

For Appellant: Shri T.S. Lakshmi Venkataraman, F.C.AFor Respondent: Ms. R. Anita, Addl. CIT
Section 11Section 119(2)(b)Section 154

Sarjoo Prasad Rajpat, Kanpur vs. Income Tax Officer 1(1)(4), Kanpur

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

ITA 343/LKW/2024[2009-10]Status: DisposedITAT Lucknow24 Jul 2025AY 2009-10

Bench: Sh. Subhash Malguria & Sh. Nikhil Choudharya.Y. 2009-10 M/S Sarjoo Prasad Rajpat Vs. Ito-1(1)(4), 55/15, Kahoo Kothi, Kanpur 16/69/ Kanpur Pan:Aaffs5661Q (Appellant) (Respondent) Assessee By: Sh. Pradeep Kumar Sahgal, Advocate Revenue By: Sh. Deepak Yadav, Dr Date Of Hearing: 02.06.2025 Date Of Pronouncement: 24.07.2025 O R D E R Per Nikhil Choudhary, A.M.: [ This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Cit(A), Nfac Under Section 250 Of The Income Tax Act, 1961 Dated 13.03.2024 Wherein The Ld. Cit(A) Has Dismissed The Appeal Of The Assessee Against The Order Under Section 154 Passed By The Ld. Ao On 25.04.2018. The Grounds Of Appeal Are As Under:- “1. That The Order In Appeal Passed By The Ld Cit(A), Nfac Is Bad In Law & Facts & Deserves To Be Quashed By Allowing The Appeal. 2. That The Ld. Cit(A), Nfac Under The Facts & Circumstances Of The Case Has Erred In Law & In Facts, In Upholding The Order Of Ld. Ao In Rejecting The Application Made Under Section 154 Of The Act. 3. That On The Facts & In The Circumstances Of The Case Of The Appellant, The Ld. Cit(A) Erred In Rejecting Contention Of Appellant For Rectification Of Mistake U/S 154 Of The Act On The Ground That Appellant Ought To Have Filed Revised Return Of Income Within Due Date If There Was Any Mistake In Filing Of Original Return Of Income. The Ld. Cit(A), Nfac Ought To Have Appreciated That Ao Is Bound To Compute Correct Income As Per Provisions Of The Act & Tax Cannot Be Levied At Higher Amount Due To Error Made While Filing Return Of Income.

For Appellant: Sh. Pradeep Kumar Sahgal, AdvocateFor Respondent: Sh. Deepak Yadav, DR
Section 139(5)Section 143(1)Section 154Section 154(8)Section 250