Refund set-off: tax authorities may set off or withhold refunds pending assessment, after notice and approvals.

Tax authorities may set off a refund, in whole or in part, against sums remaining payable by the taxpayer, after giving written intimation. Where assessment or reassessment proceedings are pending, the Assessing Officer may withhold a due refund for a limited period subject to recorded reasons and prior approval of the Commissioner or Principal Commissioner.

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