CBDT Empowers CPC Bengaluru to Rectify Tax Processing Errors
CBDT Empowers CPC Bengaluru to Rectify Tax Processing Errors and Issue Demand Notices – Notification No. 155/2025
📍 Effective From: Date of publication in the Official Gazette
🔹 Background
The Central Board of Direct Taxes (CBDT) has issued Notification No. 155/2025 empowering the Commissioner of Income Tax, Centralized Processing Centre (CPC), Bengaluru with concurrent powers to rectify mistakes and issue demand notices under the Income-tax Act, 1961.
This step aims to streamline the rectification process for errors in income-tax processing, refund computation, and interest calculation — all handled through the CPC interface.
🔹 Legal Basis
The notification is issued under Section 120(1) and (2) of the Income-tax Act, 1961, which empowers CBDT to define jurisdiction and delegate powers to various income-tax authorities.
🔹 Key Provisions of the Notification
1. Powers Granted to the Commissioner of Income Tax (CPC), Bengaluru
The Commissioner is authorized to:
- Rectify mistakes under Section 154 of the Income-tax Act, which are apparent from records.
These include:- Errors in refunds already issued
- Non-consideration of prepaid tax credits (like TDS, TCS, Advance Tax, Self-assessment Tax)
- Omission of eligible reliefs or deductions
- Incorrect computation of interest under Section 244A
- Any other computational mistake affecting tax liability, refund, or demand
- Issue demand notices under Section 156 in such rectified cases.
In essence, this means CPC can now directly correct and reissue tax/refund orders without requiring intervention from local Assessing Officers.
2. Delegation of Powers
The CIT (CPC) may delegate these rectification powers to Additional Commissioners or Joint Commissioners of Income Tax working under him.
3. Sub-delegation to Assessing Officers
Further, these Additional or Joint Commissioners can authorize Assessing Officers (AOs) subordinate to them to exercise such powers in respect of relevant cases.
🔹 Jurisdiction (Schedule Overview)
| Sl. No. | Income-tax Authority | Headquarters | Jurisdiction |
|---|---|---|---|
| 1 | Commissioner of Income Tax, Centralized Processing Centre | Bengaluru | All cases where the orders have been passed through the interface between Assessing Officer and CPC |
Thus, this applies to all cases processed or communicated through the CPC platform — primarily those involving e-filing, ITR processing, rectification requests, and refund determinations.
🔹 Effective Date
This notification takes effect immediately from the date of publication in the Official Gazette i.e., 27 October 2025.
🔹 Practical Implications
| Aspect | Before Notification | After Notification |
|---|---|---|
| Rectification of CPC-related errors | Required manual coordination with Jurisdictional AO | CPC Bengaluru can directly rectify errors |
| Issue of demand notice u/s 156 | Could only be issued by AO | CPC authorized to issue it directly |
| Refund corrections or missed TDS credits | Lengthy process | Faster, centralized correction mechanism |
| Legal empowerment | Not formally delegated | Explicitly notified under Section 120 |
🔹 Expected Benefits
✅ Faster resolution of refund mismatch and rectification requests
✅ Reduced dependence on jurisdictional Assessing Officers
✅ Centralized control ensures uniform handling of CPC-related cases
✅ Improved efficiency in handling taxpayer grievances regarding processing errors
🔹 Official Summary
“The Commissioner of Income-tax, Centralized Processing Centre, Bengaluru, shall exercise concurrent powers to rectify mistakes apparent from record and issue demand notices under Sections 154 and 156 of the Income-tax Act, 1961, in respect of all cases processed through CPC.”
🔹 Conclusion
This notification is a significant reform in the Income-tax administration framework.
By empowering the CPC Bengaluru with rectification and demand-issuing powers, the CBDT has ensured greater autonomy, accountability, and efficiency in handling taxpayer cases related to return processing, refunds, and rectifications.
Taxpayers can now expect faster correction of errors and quicker refund adjustments, making the system more transparent and time-efficient.
Also Read:
- Recommendations of the 55th Meeting of the GST Council
- Changes in GST and Income Tax during the Financial Year 2024-25
- TDS and TCS provisions applicable from April 1, 2025
- Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals
Go To Memorandum
Go To Finance Bill 2025
Read More on Union Budget 2025
