CBDT Empowers CPC for Faster Refunds and ITR Corrections
Issue: To streamline the process of rectifying common arithmetical or accounting errors arising from the automated processing of Income Tax Returns (ITR) and to expedite the subsequent issuance or correction of tax refunds.
Facts:
- Rectification of errors in automated assessments often required manual intervention by local jurisdictional Assessing Officers (AOs), leading to significant delays.
- The Central Board of Direct Taxes (CBDT) aimed to shift this process to the Central Processing Centre (CPC), Bengaluru, the automated hub for ITR processing.
- The CBDT issued Notification No. 155/2025 on October 27, 2025, to confer the necessary statutory powers.
Decision:
The CBDT empowered the Commissioner of Income Tax (CPC), Bengaluru, to exercise concurrent jurisdiction under Section 154 of the Income-tax Act for rectifying mistakes apparent from the record in cases processed through the AO-CPC interface.
Key TakeDowns:
- Centralized Rectification (Section 154): The Commissioner (CPC) is now authorized to directly rectify mistakes that are apparent from the records. This includes non-consideration of prepaid tax credits (TDS/Advance Tax), eligible reliefs, or incorrect computation of interest under Section 244A (interest on refunds).
- Faster Refunds and Correction: By centralizing the rectification process, the taxpayer can expect quicker resolution of accounting and tax credit mismatches, facilitating the timely release or correction of refunds without approaching multiple authorities.
- Issuance of Demand Notices: The CIT (CPC) is also authorized to issue the consequential notice of demand (Section 156) in such rectified cases.
- Reduced Administrative Bottlenecks: This delegation ensures the process is centrally managed and system-driven, minimizing duplication of efforts between field officers and the CPC, thereby reinforcing the goal of a faceless, technology-driven tax administration.
Source :- Economic Times