Section 245 procedure: refunds adjusted against past arrears must be reprocessed with notice, reply and AO order. Cases where the Centralised Processing Centre processed returns and refunds were fully or partly adjusted against past arrears without following the statutory two stage adjustment procedure must be transferred to Assessing Officers. Assessing Officers shall issue notices to assessees, allow responses, and after considering replies pass orders under the statutory adjustment procedure permitting or disallowing refund adjustments; the Board will fix a timetable for completing this process.