¹(1) Where, as a result of any order passed in appeal or other proceeding under this Act, refund of any amount becomes due to the assessee, the ² Assessing Officer shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf:

³ Provided that where, by the order aforesaid,—

(a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment;

(b) the assessment is annulled, the refund shall become due only of the amount, if any, of the tax paid in excess of the tax chargeable on the ⁴ taxable gifts returned by the assessee.

⁵ (2) Where refund of any amount becomes due to the assessee as a result of an order under this Act or under the provisions of sub-section (1) of section 15 after a return has been made under section 13 or section 14 or in response to a notice under clause (i) of sub-section (4) of section 15 and the Assessing Officer is of the opinion, having regard to the fact that,—

(i) a notice has been issued, or is likely to be issued, under sub-section (2) of section 15 in respect of the said return; or

(ii) the order is the subject-matter of an appeal or further proceeding; or

(iii) any other proceeding under this Act is pending,

that the grant of the refund is likely to adversely affect the revenue, the ² Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, withhold the refund till such time as the Chief Commissioner or Commissioner may determine.

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1. Ins. by Act 53 of 1962, s. 25 (w.e.f. 1-4-1963).

2. Subs. by Act 4 of 1988, s. 161, for Gift-tax Officer‖ (w.e.f. 1-4-1988).

3. The proviso added by Act 4 of 1988, s. 180 (w.e.f. 1-4-1989).

4. Subs. by Act 3 of 1989, s. 90, for total income‖ (w.e.f. 1-4-1989).

5. Subs. by Act 36 of 1989, s. 33, for sub-section (2) (w.e.f. 1-4-1989).