No adjustment of refunds against old demands if either is up to Rs 5000/- : CBDT

SECTION 245 OF THE INCOME-TAX ACT, 1961 – REFUNDS – SET OFF OF REFUNDS AGAINST TAX REMAINING PAYABLE – DATA PERTAINING TO NOTICES ISSUED UNDER SECTION 245 BY CPC, BANGALORE WHERE DEMAND/REFUND IS GREATER THAN RS. 5000

LETTER [F. NO. DIT(S)-III/CPC/2013-14/REFUND ADJUSTMENT], DATED 22-10-2013

I have been directed to inform you that in pursuance to the decision of Full Board and minutes of the meeting dated 21-8-2013, the CPC is allowed to issue refunds without adjustment of demand as an interim measure in cases where either the outstanding demand against the assessee was less than Rs. 5000/- or claim of refund was less than Rs. 5000/-.

2. A list of CCIT-wise cases where such refund/demand in excess of Rs. 5000/- exist, and notices under section 245 have been issued is available on i-Taxnet (https://10.152.2.10) on the following path:

Resources → Downloads → DIT_SYSTEMS → Notices issued under section 245 from CPC for confirmation of demands by AOs

3. It is requested to issue directions to the Assessing Officers under respective charges to make compliance of the aforesaid decision, perform necessary verification and correction following the procedure as per section 245 of the I.T. Act and communicate its findings on adjustable demand to CPC, Bengaluru, who will then process the refund and adjust the demand. The communication to CPC, Bengaluru, may also be give on its e-mail ld: cit.cpc.bangalore @ incometaxindia.gov.in