CBDT Empowers CPC-Bengaluru Commissioner to Rectify Mistakes, Issue Demand Notices Under Income Tax Act
Pranav B Prem
The Central Board of Direct Taxes (CBDT) has issued a notification — S.O. 4901(E) dated October 27, 2025 — empowering the Commissioner of Income Tax (CPC), Bengaluru with enhanced concurrent jurisdiction under the Income Tax Act, 1961. The move authorizes the Commissioner to rectify apparent mistakes and issue demand notices in all cases processed through the interface between the Assessing Officer (AO) and the Centralized Processing Centre (CPC). Under this notification, the Commissioner of Income Tax (CPC), Bengaluru, has been authorized to:
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Rectify mistakes under Section 154 of the Income Tax Act, including:
Errors in refunds previously issued.
Non-consideration of prepaid tax credits or eligible relief.
Mistakes in interest calculation under Section 244A.
Other inadvertent errors affecting computation of tax, refunds, or demands.
Issue demand notices under Section 156, where such rectification results in additional tax liability.
The notification further grants the Commissioner the power to issue written orders authorizing Additional Commissioners or Joint Commissioners of Income Tax to perform these functions. This delegation ensures administrative flexibility and faster processing within the CPC framework.
Scope and Operational Impact
These powers will apply to all cases processed electronically between the CPC and the respective Assessing Officers. The CBDT’s objective is to streamline tax administration, minimize delays, and ensure greater accuracy in tax computation and refund processing. The notification aims to:
Reduce delays in issuing refunds and demand notices.
Ensure accurate and efficient handling of rectification cases.
Minimize the need for taxpayers to engage in additional correspondence or appeals.
Jurisdiction Details
| Sl. No. | Authority Designation | Headquarters | Jurisdiction |
|---|---|---|---|
| 1 | Commissioner of Income Tax, Centralized Processing Centre | Bengaluru | All cases processed through interface between AO and CPC |
This notification, issued under the powers conferred by Section 120(1) and (2) of the Income Tax Act, 1961, takes effect immediately from the date of its publication in the Official Gazette.
