On March 31, Bank of India revealed that it has received a demand notice totaling Rs 1,128 crore from the Assessment Unit of the Income Tax Department for the assessment year 2016-17.
In a filing with the stock exchange, the bank disclosed, “…. we wish 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 notice, dated March 30, 2024, pertains to specific disallowances made under section 156 of the Income Tax Act, 1961.
Bank of India clarified that this notice does not have an immediate impact on its financial, operational, or other activities. The bank stated that it is presently appealing to the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) against the order in question.
Furthermore, the bank expressed confidence in its position on the matter, citing precedents and rulings of Appellate Authorities. It anticipates the complete withdrawal of the demand based on its factual and legal arguments.
During the last trading session on March 28, the stock closed at Rs 137.05 per share on the NSE, marking a 3.90 percent increase (equivalent to Rs 5.15) compared to the previous day’s closing price.
