Set off of refunds against tax remaining payable [Section 245] :

Where a refund is found due to any person, the Assessing Officer, Deputy Commissioner (Appeals), Commissioner (Appeals) or Chief Commissioner or Commissioner may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against any tax or interest remaining payable by the said person under the Act. However, the set off can be done only after giving intimation in writing to such person of the action proposed to be taken under this section.