Withholding of refunds under section 245(2) requires written reasons, JAO approval, and strict timelines for FAO and JAO. Withholding of income tax refunds under section 245(2) applies where the refund meets a revised monetary threshold and requires a structured workflow: FAO notifies the JAO of likely demand; the JAO records non cursory written reasons analyzing the factual matrix (including financial condition, past demands and appeals), seeks approval from the Principal Commissioner, and communicates the final withholding or release decision to CPC within prescribed timelines.