The Central Board of Direct Taxes (CBDT) has issued a notification empowering the Commissioner of Income Tax at the Centralized Processing Centre (CPC) in Bengaluru with enhanced concurrent jurisdiction to rectify certain mistakes and issue demand notices under key provisions of the Income-tax Act, 1961. The notification, S.O. 4901(E), was released on Monday and comes into effect from the date of its publication in the Official Gazette.
Under the notification, the Commissioner of Income Tax (CPC), Bengaluru, has been authorized to:
- Rectify Mistakes Under Section 154 of the Income-tax Act:
The Commissioner can now correct mistakes that are apparent from records, including:- Issues concerning refunds previously issued,
- Non-consideration of prepaid tax credits or eligible relief,
- Errors in interest calculation under Section 244A,
- Any inadvertent errors affecting tax computation, refunds, or demands.
- Issue Demand Notices Under Section 156:
Where rectification results in additional tax liability, the Commissioner can issue demand notices accordingly.
These powers apply to all cases processed through the interface between the Assessing Officer and the Centralized Processing Centre.
Authorization to Additional and Joint Commissioners
The notification further delegates administrative flexibility for faster processing the Commissioner of Income Tax (CPC) can authorize Additional Commissioners or Joint Commissioners to issue written orders enabling Assessing Officers to carry out related functions.
These delegated officers may exercise powers within the territorial and case-class jurisdictions specified in the schedule to the notification.
Scope and Operational Impact
The changes are expected to streamline the handling of assessments and refunds processed electronically through the CPC system. By empowering the Commissioner and subordinate officers to take corrective and follow-up actions, the government aims to:
- Reduce delays in issuing refunds or demand notices,
- Ensure accurate computation of tax liabilities,
- Minimize the need for taxpayers to engage in additional correspondence or appeal processes.
Jurisdiction Specified
| Sl. No. | Authority Designation | Headquarters | Jurisdiction |
| 1. | Commissioner of Income Tax, Centralized Processing Centre | Bengaluru | All cases processed through interface between AO and CPC |
The notification is effective immediately and applies to all relevant cases processed henceforth.
Notification Details
Notification No. 155/2025
Date: 27/10/2025
