Indian Bank gets Rs.873 Crore Income Tax Demand over Certain Disallowances

Indian Bank, the Public sector bank, has received a tax demand notice of Rs.873.15 crore from the Income Tax Department under Section 156 of the Income Tax Act of 1961 for the assessment year 2017-18.

The Indian Bank has informed the stock exchange that it relates to the AY 2017-18 in regard to some disallowances, though specific details have not been disclosed. The bank has said that it intends to file an appeal to challenge the order before the appropriate appellate authority within the prescribed timeline.

“Seeing to the precedence/orders of appellate authorities, the Bank feels that it has adequate factual and legal grounds to reasonably substantiate its position in the matter and considering the expected relief, the Bank expects that the entire demand will diminish,” the bank stated in a regulatory filing.

Further, it is mentioned by the bank that the demand order will not have any impact on its financial operations or other activities.