Bank Of India Faces Rs 1,128 Cr Tax Demand Notification

On 31 March, Bank of India disclosed that it has been served with a demand notice totaling Rs 1,128 crore from the Assessment Unit of the Income Tax Department, concerning the assessment year 2016-17.

In a filing to the stock exchange, Bank of India stated, "We wish to inform that, on 30 March 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 30 March 2024, addresses certain disallowances made under section 156 of the Income Tax Act, 1961.

Bank of India clarified in its stock exchange filing that the demand notice does not pose an immediate impact on its financial, operational or other activities. The bank mentioned that it is presently in the process of appealing to the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) against the aforementioned order.

Furthermore, the bank expressed confidence in its position on the matter, citing precedents and rulings of Appellate Authorities. It expects the entire demand to be resolved favorably.

During the previous trading session on 28 March, the bank's share settled at Rs 137.05 each at the NSE, marking a 3.90 per cent increase (or Rs 5.15) compared to the previous day's closing price.