The Central Board of Direct Taxes (CBDT) has issued Notification No. 155/2025 dated October 27, 2025. This notification gives the Commissioner of Income Tax at the Centralized Processing Centre (CPC), Bengaluru the power to correct clear mistakes in tax assessments and send tax demand notices. The goal is to make tax processing more efficient and reduce delays for taxpayers.
What This Means for Taxpayers
The Commissioner at CPC Bengaluru now has statutory powers under the Income-tax Act, 1961 to:
- Fix obvious errors in tax assessments
- Issue demand notices after corrections
- Work alongside other tax authorities without replacing them
This change applies to all cases processed through the CPC system, covering various regions, types of cases, and taxpayers.
Powers to Correct Mistakes u/s 154
The Commissioner can now correct mistakes that are clearly visible in the tax records. These include:
- Wrong tax calculations
- Incorrect refund amounts
- Missed tax credits or reliefs
- Errors in interest calculation under Section 244A
These corrections can be made quickly without a full reassessment, helping taxpayers avoid long delays and unnecessary complications.
Power to Issue Demand Notices u/s 156
After fixing errors, the Commissioner can send demand notices under Section 156. This ensures that any revised tax amounts are officially communicated to taxpayers, keeping the tax collection process transparent and consistent.
Further Delegation of Powers
The Commissioner can delegate these powers to:
- Additional Commissioners or Joint Commissioners of Income Tax
- These officers can further delegate to Assessing Officers under their control
Delegation must follow the rules mentioned in the notification, based on the type of case, taxpayer, or region. All cases must be linked to the CPC system.
Why This Matters
This notification, issued under Section 120(1) and 120(2) of the Income-tax Act, aims to:
- Speed up corrections of common errors
- Improve refund and assessment timelines
- Strengthen coordination between CPC and field offices
- Reduce taxpayer complaints and delays
It’s a step forward in modernizing India’s tax system by using centralized processing for better accuracy and faster service.
Official Notification:
You can read the full text of CBDT Income Tax Notification No. 155/2025 on the official website.