The refund payable under any other act against the demands due from the assessee. - Income Tax - 238/CBDT

INSTRUCTION NO. 238/CBDT Dated: November 11, 1970 Section(s) Referred: 245 Statute: Income - Tax Act, 1961 The board had occasion to deal with representations from some assessees requesting that the amount refundable to them under any direct taxes act may be adjusted against demands payable by them under the other direct taxes enactments. 2. At present there is no provision for such adjustment of refunds. For example u/s.245 of the I.T.Act an income-tax refund can be set off against income-tax demand only. But the procedure of receiving the refunds and paying the demand is quite cumbersome and time-consuming. Board have therefore decided that a request for adjustment of amount refundable under one direct taxes Act against demand under any other direct taxes Act should be readily entertained by the officer. He should adjust the refunds against demands which have fallen due and are not in dispute. 3. In the absence of a request from the assessee for such adjustment, the ITO should be passing a formal order u/s.226(3) of the I.T.Act/sec. 32 of the wealth tax act 1957/sec 33 of the Gift tax Act, 1958 set off the refund payable under any other act against the demands due from the assessee. 4. The instructions may please be brought to the notice of the officers working in your charge.