792/CBDT. - Income Tax - 792/CBDT

INSTRUCTION NO. 792/CBDT Dated : November 19, 1974 Section(s) Referred: 245 Statute: Income - Tax Act, 1961 Reference is invited to the provisions of section 245 of the IT Act, 1961, which empowers IT Authorities to set off an amount to be refunded against the sum, if any, remaining payable under the IT Act, by the person to whom the refund is due. Action under section 245 can be taken only after giving an intimation in writing to such person of the action proposed. 2. It has been brought to the notice of the Board that considerable confusion is being created due to the adjustments of the refund without giving an intimation in writing to the assessee of the intention to do so. The Board desire that the provisions contained in section 245 should be carefully observed by the ITOs without fail and the Inspecting Assistant commissioners may carry out surprise checks occasionally to ensure that the provisions of law are being scrupulously followed. 3. Necessary instructions may please be issued to all the officers working in each charge for strict compliance.