₹1,128 Crore Tax Demand Issued to Bank of India

1 Apr 2024 , 10:42 AM

On March 31, the Bank of India declared that it had received a demand letter from the Income Tax Department’s Assessment Unit for ₹1,128 Crore, concerning the assessment year 2016–17.

In a stock exchange statement, the Bank of India stated, “… this is to inform that, on 30.03.2024 at 5.51 PM, the Bank has received a demand notice from the Assessment Unit, Income Tax Department, pertaining to AY 2016-17.”

The notification, dated March 30, 2024, according to the lender, relates to specific disallowances granted in accordance with section 156 of the Income Tax Act of 1961.

The state-owned bank made it clear in its stock exchange statement that the demand notice has no immediate effect on its operations, finances, or other activities. According to the Bank of India, an appeal against the aforementioned order is presently being filed with the National Faceless Appeal Centre (NFAC) Commissioner of Income Tax (Appeals).

The bank added that it is certain it has enough factual and legal justification to fairly defend its position on the matter in light of appellate authorities’ precedents and decisions. The bank therefore anticipates that the total demand will decline.

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