Set off and withholding of refunds in certain cases - Section 245 - Income Tax - Ready Reckoner - Income Tax

Set off and withholding of refunds in certain cases [ Section 245 ] The Assessing Officer or Commissioner or Principal Commissioner or Chief Commissioner or Principal Chief Commissioner after giving an intimation in writing to such person of the action proposed to be taken under this sub-section, Where under any of the provisions of this Act, a refund becomes due or is found to be due to any person , 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. [ section 245(1) ] Where a part of the refund is set off under the provisions of section 245(1), or where no such amount is set off , and r efund becomes due to a person, and the Assessing Officer, Where the proceedings for assessment or reassessment are pending in the case of such person, is of the opinion that the grant of refund is likely to adversely affect the revenue [ Omitted vide Finance (No. 2) Act , 2024 w.e.f. 01.10.2024] 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 sixty days from [Inserted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] the date on which such assessment or reassessment is made . [ section 245(2) ]