New Delhi, March 31 (IANS) Bank of India has received a demand notice from the Assessment Unit, Income Tax Department, pertaining to AY 2016-17 to the tune of Rs 1,127.72 crore. The Bank plans to file an appeal against the order and believes it has factual and legal grounds to substantiate its position. The Bank expects the demand to subside without impacting its operations.
The demand notice was issued under section 156 of the Income Tax Act, 1961, for certain disallowances made in the annual year (AY) 2016-17. Bank of India is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), within the prescribed timelines.
“As such, there is no impact on financial, operations or other activities of the Bank,” Bank of India stated. The Bank intends to make use of the recourse provided in the Income Tax Statute to challenge the demand of Rs 1,127.72 crore raised in the order.
It remains to be seen how the appeal process unfolds for Bank of India as they challenge the demand notice from the Income Tax Department. The Bank is confident in its ability to substantiate its position and expects the demand to subside eventually. The outcome of the appeal will determine the financial implications for Bank of India.
