Section 254(1) of the Income Tax Act

Income-tax Act, 2025: s.363

Section 254(1) falls under section 254 of the Income-tax Act, 1961, which corresponds to section 363 (Orders of Appellate Tribunal) of the Income-tax Act, 2025.

Read section 363 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 254(1) is S. Ranganathan J in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central) (126 ITR 48), cited in 77 of the 1,265 judgments on BharatTax that turn on this section.

Leading authorities on Section 254(1)

S. Ranganathan J in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central)
126 ITR 48 · 1980 · High Court
77
citing judgments

Section 68 was introduced to codify and clarify existing judicial principles regarding unexplained cash credits and to plug loopholes, rather than to introduce entirely new law. The Assessing Officer must conduct exhaustive inquiries and gather material before making any additions for unexplained credits.

Dishman Pharmaceuticals and Chemicals Ltd. v. DCIT (OSD), Ahmedabad
346 ITR 228 · 2012 · High Court
74
citing judgments

For a valid reassessment under Section 147, the Assessing Officer must record substantive reasons to believe income has escaped assessment, as a mere boilerplate statement of non-disclosure or non-filing is insufficient. Furthermore, a taxpayer's disclosure is not considered full and true if it requires further inquiry by the AO to ascertain material details, especially under Explanation 1 to Section 147.

National Thermal Power Corporation v. CIT
367 ITR 85 · 2014 · High Court
62
citing judgments

The Assessing Officer must consider fresh claims made during assessment proceedings, as income tax proceedings are not adversarial and income should be computed according to law, unless a statutory bar exists. The Supreme Court's decision in Goetze (India) Ltd. does not restrict appellate authorities from entertaining new claims.

STATE OF GUJARAT v. UTILITY USERS WELFARE ASSOCIATION
6 SCC 21 · 2018 · Reported
53
citing judgments
Delhi in CIT v. Best Plastics (P) Ltd.
295 ITR 256 · 2007 · High Court
41
citing judgments

Assessment orders passed by an Assessing Officer are liable to be set aside if they disregard binding instructions or circulars issued by the Central Board of Direct Taxes (CBDT), especially concerning the selection of returns for scrutiny. The CBDT circulars are binding on all officers of the Income-tax department.

CIT v. Jeoffrey Manners & Co. Ltd.
180 Taxmann 87 · 2009 · High Court
40
citing judgments

Expenditure incurred for making advertisement films is revenue expenditure if it relates to an ongoing business. However, if the expenditure is for a brand to be used in a business yet to commence, it is capital expenditure.

Gillanders Arbuthnot & Co. Ltd. v. CIT
53 ITR 283 · 1964 · Supreme Court
29
citing judgments

Payment received for refraining from carrying on a competitive business is treated as a capital receipt. High Courts may misinterpret prior Supreme Court judgments like Gillanders Arbuthnot & Co. Ltd. in their decisions.

Jayvant Singh Vaghela v. ITO
40 Taxmann.com 491 · 2013 · High Court
26
citing judgments

Appeals should normally be decided on merits rather than dismissed on technical grounds like delay, unless there is gross negligence or mala fide intention by the assessee.

CIT v. Associated Cables P. Ltd.
286 ITR 596 · 2006 · High Court
25
citing judgments

Retention money withheld by a contractee is not taxable in the year it is retained, but only in the year the obligations under the contract are fulfilled and the amount becomes due to the assessee.

CIT v. Devdas Naik
366 ITR 12 · 2014 · High Court
25
citing judgments

Deduction under Section 54 or 54F for capital gains can be allowed even if multiple residential units are acquired, provided they are used as a single residential unit or can be combined into one for the purpose of residence.

Judgments on Section 254(1)

Engineering Professional Company Pvt. Ltd., Surat vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Surat

In the result, all the grounds raised by the assessee are allowed for statistical purposes

ITA 453/SRT/2023[2016-17]Status: DisposedITAT Surat28 Dec 2023AY 2016-17

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita Nos.451 To 453/Srt/2023 (Ays 2011-12, 2014-15 & 2016-17) (Hearing In Physical Court) Engineering Professional Co. Pvt. Ltd. 444, Royal Arcade, Opp. Deputy Commissioner Of Sarthana Zoon, Varachha Income Tax, Circle-1(1)(1), Vs Road, Near Sarthana Jakat Surat, Aaykar Bhavan, Naka, Surat-395006 Majura Gate, Surat-395001 Pan : Aabce 0313 Q अपीलाथ"/Appellant ""थ" /Respondent

Section 144Section 254(1)

Engineering Professional Company Pvt. Ltd., Surat vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Surat

In the result, all the grounds raised by the assessee are allowed for statistical purposes

ITA 452/SRT/2023[2014-15]Status: DisposedITAT Surat28 Dec 2023AY 2014-15

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita Nos.451 To 453/Srt/2023 (Ays 2011-12, 2014-15 & 2016-17) (Hearing In Physical Court) Engineering Professional Co. Pvt. Ltd. 444, Royal Arcade, Opp. Deputy Commissioner Of Sarthana Zoon, Varachha Income Tax, Circle-1(1)(1), Vs Road, Near Sarthana Jakat Surat, Aaykar Bhavan, Naka, Surat-395006 Majura Gate, Surat-395001 Pan : Aabce 0313 Q अपीलाथ"/Appellant ""थ" /Respondent

Section 144Section 254(1)

Engineering Professional Company Pvt. Ltd., Surat vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Surat

In the result, all the grounds raised by the assessee are allowed for statistical purposes

ITA 451/SRT/2023[2011-12]Status: DisposedITAT Surat28 Dec 2023AY 2011-12

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita Nos.451 To 453/Srt/2023 (Ays 2011-12, 2014-15 & 2016-17) (Hearing In Physical Court) Engineering Professional Co. Pvt. Ltd. 444, Royal Arcade, Opp. Deputy Commissioner Of Sarthana Zoon, Varachha Income Tax, Circle-1(1)(1), Vs Road, Near Sarthana Jakat Surat, Aaykar Bhavan, Naka, Surat-395006 Majura Gate, Surat-395001 Pan : Aabce 0313 Q अपीलाथ"/Appellant ""थ" /Respondent

Section 144Section 254(1)

Mahavir Education Trust, Surat vs. Additional CIT CPC/ Jurisdictional A.O. Exemption Ward, Surat, Bengaluru/Surat

In the result, appeal of assessee is allowed

ITA 647/SRT/2023[2020-21]Status: DisposedITAT Surat21 Dec 2023AY 2020-21

Bench: Shri Pawan Singh(Physical Hearing) Mahavir Educational Trust, Addl.C.I.T., 6/1020, Opp. Jay Jalaram Khaman, C.P.C. Bangalore, Vs. Balaji Road, Nani Chhipwad, Gopipura, Surat-395001. (Gujarat) Jurisdictional A.O. Pan No. Aaatn 4014 C Exemption Ward, Surat. Appellant/ Assessee Respondent/ Revenue

Section 11Section 119(2)(b)Section 12ASection 254(1)

Suhel Mohamed Salim Bhajjuwala, Bharuch vs. ITO, Bharuch

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

ITA 529/SRT/2023[2011-12]Status: DisposedITAT Surat20 Dec 2023AY 2011-12

Bench: Shri Pawan Singhआ.अ.सं./Ita No.529/Srt/2023 (Ay 2011-12) (Hearing In Physical Court) Suhel Mohamed Salim Income Tax Officer, Bhajjuwala, Ward-1(3), Bharuch, Vs S-14, Ahmed Nagar Station Road, Hari Kunj Manubar Road, Bharuch- Building, Above Bank Of 392001 Baroda, Bharuch-392001 Pan No: Ajwpb 9750 D अपीलाथ"/Appellant ""यथ" /Respondent

Section 143(3)Section 147Section 254(1)Section 68

The DCIT, Circle.1(1), Thrissur vs. Dhanalakshmi Bank Ltd., Thrissur

ITA 702/COCH/2022[2015-2016]Status: DisposedITAT Cochin11 Dec 2023AY 2015-2016

Bench: Shri Sanjay Arora & Shri Manomohan Dasdy. Cit, Circle - 1(1) Dhanalakshmi Bank Ltd. Aayakar Bhavan Dhanalakshmi Building Vs. S.T. Nagar Thrissur 686575 Thrissur 680001 [Pan: Aabct0019J] (Appellant) (Respondent)

Section 254(1)

Bhikhubhai Keshavbhai Mistry, Bharuch vs. Income Tax Officer, Ward - 1(5), Bharuch

In the result, the grounds of appeal raised by the assessee is partly allowed

ITA 410/SRT/2023[2009-10]Status: DisposedITAT Surat11 Dec 2023AY 2009-10

Bench: Shri Pawan Singh(Physical Hearing) Bhikhubhai Keshavbhai Mistry, I.T.O., 1, Kabirgam, Valiya, Ankleshwar, Ward-1(5), Vs. Bharuch, Gujarat-393135. Bharuch. Pan No. Apnpm 1810 Q Appellant/ Assessee Respondent/ Revenue

Section 143(2)Section 144Section 147Section 148Section 254(1)Section 69A

Parvatiben Bhagubhai Patel, Valsad vs. Income Tax Officer, Ward-7, Vapi

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

ITA 497/SRT/2023[2011-12]Status: DisposedITAT Surat30 Nov 2023AY 2011-12

Bench: Shri Pawan Singh(Physical Hearing) Parvatiben Bhagubhai Patel, Vs. The Ito, Dungri, Ponia Falia Udwada, Ward -7, Valsad – 396185. Vapi Pan : Afipp2146M Appellant Respondednt

Section 144Section 148Section 254(1)

Ranajitbhai Balvantbhai Patel, Olpad vs. ITO - Ward 2(2)(4), Majura Gate

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

ITA 646/SRT/2023[2017-18]Status: DisposedITAT Surat28 Nov 2023AY 2017-18

Bench: Shri Pawan Singh(Hybrid Hearing) Ranajitbhai Balvantbhai Patel, Vs. The Ito, At & Post Arthan, Tal: Olpad, Ward -2(2)(4), District – Surat, 394130. Surat. Pan : Bxjpp1448N Appellant Respondednt

Section 249(4)Section 254(1)Section 69A

Dilip Bhikhubhai Chauhan, Surat vs. Income Tax Officer, Ward-3(2)(2), Surat

In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes

ITA 509/SRT/2023[2011-12]Status: DisposedITAT Surat28 Nov 2023AY 2011-12

Bench: Shri Pawan Singh(Hybrid Hearing) Dilip Bhikhubhai Chauhan, I.T.O., Devkrupa Society, Opp. Dholakiya Ward-3(2)(2), Vs. Garden, Katargam, Surat-395004. Aayakar Bhavan, Majura Pan No. Aaopc 8463 B Gate, Surat. Appellant/ Assessee Respondent/ Revenue

Section 144Section 254(1)

Shri Prabhubhai Dullabhbhai Patel L/R Viral Patel, Surat vs. Income Tax Officer, Ward - 1(3)(8), Surat

ITA 562/SRT/2023[2012-13]Status: DisposedITAT Surat22 Nov 2023AY 2012-13

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.562/Srt/2023 (Ay 2012-13) (Hearing In Physical Court) Shri Prabhubhai Dullabhbhai Income Tax Officer, Ward- Patel 1(3)(8), Surat, Aaykar Vs L/H Viral Prabhubhai Patel Bhavan, Anvil Business 2/1, Kalpana Society-1, Centre, Adajan Haizra Road, Palanpur Patiya Rander Road, Adajan, Surat-395009 Surat-395009 Pan No. Ackpp 3015 G अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 254(1)

Shri Kirankumar Rasiklal Sanghvi, Deesa vs. Pr. Commissioner of Income Tax-4, Ahmedabad

In the result, the application filed by the assessee for withdrawal of appeal is allowed

ITA 222/SRT/2021[2015-16]Status: HeardITAT Surat21 Nov 2023AY 2015-16

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.222/Srt/2021 (Ay 2015-16) (Hybrid Hearing) Shri Kirankumar Rasiklal Principal Commissioner Of Sanghvi Income-Tax-4, Ahmedabad, Vs 1, Paras Society, Room No.311, “C” Block, 3Rd Neminathnagar Road, Deesa- Floor, Pratyaksh Kar Bhavan, 385535 Opp. Polytechnic, Ambawadi, Pan : Afops 0131 D Ahmedabad-380015 अपीलाथ"/Appellant ""थ" /Respondent िनधा"रती की ओर से /Assessee By Shri Rushin G Patel, Advocate राज" की ओर से /Revenue By Shri Ashish Pophare, Cit-Dr सुनवाई की तारीख/Date Of Hearing 21.11.2023 उद्घोषणा की तारीख/Date Of 21.11.2023 Pronouncement Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By Assessee Is Directed Against The Order Of Learned Principal Commissioner Of Income Tax-Ahmedabad-4, [For Short To As ‘Ld. Pcit’] Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Dated 03.03.2022 For Assessment Year (Ay) 2015-16. The Impugned Order Passed On 30.03.2020, However, In Form-36, Date Of Communication Of The Order Mentioned As 19.08.2020 & The Appeal Was Filed On 22.11.2021. 2. The Ld. Authorized Representative (Ld.Ar) For The Assessee Submits That Due To Bonafide Belief That Surat Bench Of Income Tax Appellate Tribunal (Surat Bench) Has Jurisdiction, The Assessee Filed Present Appeal. The Basis Of Belief Of Assessee Was That For Ay 2015-16, The Revenue Filed Appeal Against The Order Of Cit(A)-4 Ahmadabad Before Kirankumr R Sanghvi

Section 14Section 254(1)Section 263

Dinesh Naranbhai Koshiya, Surat vs. Income Tax Officer, Surat

In the result, the grounds of appeal raised by the assessee in quantum assessment is allowed for statistical purpose

ITA 464/SRT/2023[2016-17]Status: DisposedITAT Surat08 Nov 2023AY 2016-17

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita Nos.463-464/Srt/2023 (Ay 2016-17) (Hearing In Hybrid Process) Dinesh Naranbhai Koshiya Income Tax Officer C/1, 404, Krishna Residency, Ward-3(2)(2), Surat, Vs Laxmikant Ashram Road, Aayakar Bhawan, Majura Katargam, Surat-395004 Gate, Surat-395001 Pan No: Auypk 6786 B अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 254(1)Section 271B

Dinesh Naranbhai Koshiya, Surat vs. Income Tax Officer, Surat

In the result, the grounds of appeal raised by the assessee in quantum assessment is allowed for statistical purpose

ITA 463/SRT/2023[2016-17]Status: DisposedITAT Surat08 Nov 2023AY 2016-17

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita Nos.463-464/Srt/2023 (Ay 2016-17) (Hearing In Hybrid Process) Dinesh Naranbhai Koshiya Income Tax Officer C/1, 404, Krishna Residency, Ward-3(2)(2), Surat, Vs Laxmikant Ashram Road, Aayakar Bhawan, Majura Katargam, Surat-395004 Gate, Surat-395001 Pan No: Auypk 6786 B अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 254(1)Section 271B

Me and Mummy Hospital, Surat vs. Dy. Commissioner of Income Tax, Central Cir.3, Surat

In the result, the grounds of appeal raised by assessee are allowed

ITA 365/SRT/2023[2014-15]Status: DisposedITAT Surat06 Nov 2023AY 2014-15

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.355 & 365/Srt/2023 (Ays 2013-14 & 2014-15) (Hearing In Physical Court) Me & Mummy Hospital Dy. Commissioner Of 2Nd Floor, Patwa Building, Opp. Income Tax, Central Circle- Vs Tapi Baug Society, Varachha, 3, Surat, Room No. 507, Surat-395006 Aayakar Bhawan, Majura Pan No. Aanfm 0445 Q Gate, Surat-395001 अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 154Section 254(1)

Me and Mummy Hospital, Surat vs. Dy. Commissioner of Income Tax, Central Cir.3, Surat

In the result, the grounds of appeal raised by assessee are allowed

ITA 355/SRT/2023[2013-14]Status: DisposedITAT Surat06 Nov 2023AY 2013-14

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.355 & 365/Srt/2023 (Ays 2013-14 & 2014-15) (Hearing In Physical Court) Me & Mummy Hospital Dy. Commissioner Of 2Nd Floor, Patwa Building, Opp. Income Tax, Central Circle- Vs Tapi Baug Society, Varachha, 3, Surat, Room No. 507, Surat-395006 Aayakar Bhawan, Majura Pan No. Aanfm 0445 Q Gate, Surat-395001 अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 154Section 254(1)

Gangeshwar Seva Mandal Charitable Trust, Surat vs. Commissioner of Income Tax (Exemption), Ahmedabad

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

ITA 589/SRT/2023[2022-23]Status: HeardITAT Surat03 Nov 2023AY 2022-23

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 12ASection 154Section 254(1)Section 80G

Gangeshwar Seva Mandal Charitable Trust, Surat vs. Commissioner of Income Tax (Exemption), Ahmedabad

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

ITA 588/SRT/2023[2022-23]Status: HeardITAT Surat03 Nov 2023AY 2022-23

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 12ASection 154Section 254(1)Section 80G

Basant Sekhani, Surat vs. Income Tax Officer Ward 2(2)(1), Surat

In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes

ITA 585/SRT/2023[2010-11]Status: HeardITAT Surat01 Nov 2023AY 2010-11

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 144Section 254(1)Section 271(1)(b)Section 271(1)(c)Section 69

Basant Sekhani, Surat vs. Income Tax Officer Ward 2(2)(1), Surat

In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes

ITA 584/SRT/2023[2010-11]Status: HeardITAT Surat01 Nov 2023AY 2010-11

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 144Section 254(1)Section 271(1)(b)Section 271(1)(c)Section 69