CBDT instruction on time bound reply to response against intimation U/S 245


BDT instruction on time bound reply to response against intimation U/S 245


  1. The Directorate of Income Tax (Systems) has issued Instruction No. 06 of 2022 dated November 28, 2022 to the Assessing Officers for response to intimation under section 245 of the Income Tax Act, 1961 issued by CPC, Bengaluru for reduction in the time limit for submitting response to intimation under section 245 of the IT Act, 1961 by the Assessing Officers.
  1. This is in the light of the directions of the Delhi High Court, issued on their own motion due to writ of mandamus issued for necessary action by the Income Tax Department.
  1. It is observed that, in certain cases, consequent to the issue of intimation u/s 245, the assessees had responded on the demand portal that the demands are incorrect, in as much as that the demands are stayed by Assessing Officer/ITAT/High Court.
  1. It has been reported that incorrect categorization of such demand as “correct and collectible” or not providing feedback by the Assessing Officers on the assessee’s response has resulted in incorrect adjustment of refunds by CPC against such demands, leading to avoidable grievances and litigations.
  1. If the assessee either does not agree or partially agrees for adjustment, the matter shall be referred by CPC immediately to the Assessing Officer, who shall, within 21 days from the date of such reference, shall provide feedback to CPC as to whether the adjustment should be made or not, and in case of partial adjustment to be made then, amount of demand to be adjusted for each A.Y. needs to be specified in demand portal.
  1. If no feedback is received from the Assessing Officer within 21 days, CPC shall either release the refund without adjustment, or adjust the refund to the extent of demands agreed for adjustment by the assessee.
  1. It is hereby directed that CPC shall not hold these refunds beyond the period of 21 days from the date of reference to the Assessing Officers and shall release the same to the assessee, without delay.