Comparison of section 438 "Set off and withholding of refunds in certain cases." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....date or enactment/commencement date: Not stated in the document. Background & Scope Statutory hook: Section/Clause 438, titled "Set off and withholding of refunds in certain cases," falls under the heading REFUNDS within the Income Tax statute or Bill referenced. The provisions concern the power of the Assessing Officer or Commissioner (and senior Commissioner ranks) to set off refunds against tax liabilities and to withhold refunds where assessment/reassessment proceedings are pending. Definitions or explanatory provisions: Not stated in the document. The text identifies decision-makers as "Assessing Officer or Commissioner or Principal Commissioner or Chief Commissioner or Principal Chief Commissioner." No separate definitions of "refu....

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....tax administration to protect revenue by offsetting refunds against outstanding liabilities and to allow temporary withholding of refunds where assessments/reassessments are pending, subject to procedural safeguards (written intimation; reasons recorded; prior approval). The phraseology indicates a balance between taxpayer entitlements to refunds and administrative interest in recovery and verification during assessment processes. Interpretive principles indicated by the text: Mandatory procedural steps (use of "shall" and requirement for written intimation/reasons) suggest the legislature intended these safeguards to be mandatory preconditions to exercise of the set-off/withholding powers. The requirement of prior approval for withholding....

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....ocedures, or provisos under other sections is Not stated in the document. Differences between the two provisions and practical impact Observed textual differences between the final Section 438 (Document 1) and Clause 438 - Old Version (Document 2) are minor and largely stylistic. Key differences and practical impact are: * Presence of the word "only" in sub-section (2) of the Bill version: The Bill states "Any action under sub-section (1) shall only be taken after giving intimation in writing...," whereas the Act text states "Any action under sub-section (1) shall be taken after giving an intimation in writing...." * Practical impact: Both formulations make the intimation requirement mandatory. The addition of "only" in the Bill is em....