CBDT Empowers CPC Bangalore to Rectify and Issue Income Tax Demand in certain cases

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has issued an official notification (No. 155/2025), dated October 27, 2025, specifying powers to certain Commissioners of Income Tax (CITs) (details of CITs and their areas or jurisdictions are given below) and allowing them to further pass on these powers to officers working under them, to make the handling of mistakes refunds, and demands quicker and smoother. Here’s the comprehensive guide on their concurrent powers:

(i) According to the notification, the Commissioner of Income-tax (mentioned below) is now permitted to exercise their concurrent powers.

1. These powers include correcting mistakes under Section 154 of the Income Tax Act 1961 that are clearly visible from the records. These include:

• Wrong calculation of tax or refund in any earlier order.
• Refunds were issued incorrectly or not processed properly.
• Ignoring prepaid tax amounts such as TDS, TCS, or advance tax.
• Missing any relief or deduction the taxpayer is eligible for.
• Wrong calculation of interest under Section 244A (interest on refund).
• Simply put, they can fix any obvious errors in tax computation, refund, or demand without needing a full reassessment.

2. They are now permitted to issue demand notices under section 156 of the Income-tax Act, 1961, in cases mentioned above.

(ii) These Commissioners of Income-tax are also authorised to delegate these powers to Additional Commissioners or Joint Commissioners of Income-tax who operate under them by simply issuing orders in writing, and the delegation will apply only to the same area, persons, or types of cases mentioned in the Schedule.

(iii) After receiving these written orders from the Commissioner of Income Tax, the Additional or Joint Commissioners can then further authorise their subordinate Assessing Officers (again, through written orders) to exercise the same functions.

Refer to the official notification for complete information.