Question

Section 154 under IT Act is:

• A. For filing return of Income
• B. For filing return with late fee
• C. Rectification of mistakes
• D. Appeal against the order passed by the ITO

Hint:

Always memorize key section numbers of major acts like the Income Tax Act, CrPC, and CPC. Section 154 is often asked — it refers to rectification of mistakes apparent from record.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept.
The Income Tax Act, 1961 lays down various provisions related to filing returns, assessments, appeals, and rectifications. Section 154 specifically deals with the correction of errors that are apparent from the record.

Step 2: Detailed Explanation.
Section 154 of the Income Tax Act, 1961 empowers an Income Tax Authority to rectify any mistake apparent from the record. This can be done either:
- Suo motu (on its own), or
- When such a mistake is brought to the notice of the authority by the assessee.
Other related sections include:
- Section 139 – Filing of Return of Income.
- Section 234F – Late Fee for Filing Return.
- Section 246A – Appeal to the Commissioner (Appeals).
Thus, Section 154 provides the mechanism for correction of clerical, arithmetical, or any apparent factual mistakes in orders or intimation.
Step 3: Final Answer.
Hence, Section 154 of the Income Tax Act relates to the Rectification of Mistakes.