Bank of India receives Rs 1,128 cr tax demand order

economictimes.indiatimes.com:

Bank of India on Sunday announced that it has been issued a demand notice totaling Rs 1,127.72 crore by the Income Tax Department's Assessment Unit, pertaining to the assessment year 2016-17.

The Bank has received a demand notice under section 156 of the Income Tax Act, 1961, pertaining to the annual year (AY) 2016- 17 wherein certain disallowances have been made, it said in an exchange filing.

According to the exchange filing the Bank is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) against the said order within the prescribed timelines.

“The Bank is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) against the said order within the prescribed timelines. Looking at the precedence/Orders of Appellate Authorities, the Bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter. Accordingly, the Bank expects the entire demand to subside. As such, there is no impact on financial, operations or other activities of the Bank,” Bank of India said.

Bank of India said it would avail recourse provided in the Income Tax Statute against the demand of Rs 1,127.72 crore raised in the order.