The meaning of in pursuance of under section 237 to 245 of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here is an excerpt of the court’s order in which the Hon’ble High Court tried to explain the meaning of in pursuance of.
Meaning of in pursuance of defined by court
The phrase “in pursuance of ” used in section 237 to 245 of the Income Tax Act came up before hon’ble Madras High Court in CIT Vs. Seshasayee Paper & Board Ltd.  135 TAXMAN 506 (MAD.) and it explained
Meaning: The words ‘in pursuance of’ in the provision do not imply that the payment of the amount should have been made subsequent to the order of assessment. These words are only meant to clarify that the amount of excess on which the interest is to be paid under that section is an amount which is in excess of the amount which has been assessed as tax after the appellate order.
Section 237 of Income Tax Act
237. If any person satisfies the Assessing Officer that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess.
Section 245 of Income Tax Act
Set off of refunds against tax remaining payable.
245. Where under any of the provisions of this Act, a refund is found to be due to any person, the Assessing Officer, Deputy Commissioner (Appeals), Commissioner (Appeals) or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section.
In this article, you can get the guidance from high court on the meaning of in pursuance of under section 245 of the Income Tax Act.
Updated up to Finance Act 2021.