Section 245 - Set off and withholding of refunds in certain cases - Income-tax Act, 1961

6 [ Set off and withholding of refunds in certain cases. 245. (1) Where under any of the provisions of this Act, a refund becomes due or is found to be due to any person, the Assessing Officer or Commissioner or Principal Commissioner or Chief Commissioner or Principal Chief Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this sub-section. (2) Where a part of the refund is set off under the provisions of sub-section (1), or where no such amount is set off, and refund becomes due to a person, and the Assessing Officer, having regard to the fact that proceedings for assessment or reassessment are pending in the case of such person, 7 [****] he may, for reasons to be recorded in writing and with the previous approval of the Principal Commissioner or the Commissioner, as the case may be, withhold the refund up to 8 [ sixty days from ] the date on which such assessment or reassessment is made. ] ------------------ Notes :- 1. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 2. Substituted for Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 3. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978. 4. Substituted for Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 5 . Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013. 6. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, Set off of refunds against tax remaining payable. 245. Where under any of the provisions of this Act, a refund is found to be due to any person, the 1 [Assessing] Officer, 2 [Deputy Commissioner (Appeals)] 3 [, Commissioner (Appeals)] or 4 [ 5 [Principal Chief Commissioner or] Chief Commissioner or 5 [Principal Commissioner or] Commissioner], as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section. 7. Omitted vide Section 73 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, is of the opinion that the grant of refund is likely to adversely affect the revenue, 8. Inserted vide Section 73 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024