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22 CFR 41.121(h)(3)/(4) of the INA
This is the section of the immigration regulations that relates to the refusal of a visa to enter the US.
If a consular officer is under the belief that you are ineligible for a visa based on grounds of inadmissibility they have authority under 22 CFR 41.121(h)(3)/(4) of the INA to refuse issuing a visa.
Under this section of the law the consular officer is also required to inform you of the reason for the refusal. The most common reason for refusal is 8 CFR 214(b) - not having satisfied the consular officer that you do not have an immigrant intent and that you will not return to home country at the end of your visit.
Other grounds for refusal are national security, criminal convictions, previous unlawful presence, etc.
So there are many, many grounds for a visa to be refused but the section you refer to is the authority of a consular officer to refuse a visa.
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