Re: Procedural questions- Addustment of Refund – Clarification is desired from CBDT

What is the time limit for granting refund due under VSV to declarant? Whether such refund can be adjusted against outstanding demands under ITA?

The time limit has not been prescribed under the Act/ Rules.  CBDT may issue necessary directions to CIT’s for timely grant of refund.  Further, this aspect may be prescribed in Rules. If any outstanding demand is existing, then it is likely that refund due under VSV can be adjusted against such outstanding demand after giving notice to the taxpayer regarding the same.

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