Bank of India Receives Rs 1,127.72 Crore Demand Notice from Income Tax Department

Bank of India revealed on Sunday that it has been served with a demand notice amounting to Rs 1,127.72 crore by the Income Tax Department’s Assessment Unit for the assessment year 2016-17.

The bank stated in an exchange filing that it had received a demand notice under Section 156 of the Income Tax Act, 1961, for the annual year (AY) 2016-17, which included certain disallowances.

In response to this notice, the bank is taking steps to file an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), within the specified time frame.

In its filing, the bank expressed confidence in its ability to substantiate its position before the appellate authority, citing precedent and orders of similar cases. Consequently, the bank expects the entire demand to be withdrawn, asserting that there will be no adverse impact on its financial, operational, or other activities.

Bank of India further stated its intention to explore the recourse provided in the Income Tax Statute to challenge the demand of Rs 1,127.72 crore outlined in the order.

This development underscores the ongoing engagement between financial institutions and tax authorities, as they navigate complex regulatory and legal frameworks in the pursuit of compliance and resolution.