Tamilnad Mercantile Bank gets Income Tax Demand Notice worth approx. Rs.59 Crore for AY 2017-18

Tamilnad Mercantile Bank Ltd., a private sector lender, announced on Tuesday (March 11) that it has received a Notice of Demand under Section 156 of the Income Tax Act, 1961, from the Income Tax Department’s Assessment Unit for the assessment year 2017-18.

“We like to inform you that the bank has received a demand notice under Section 156 of the Income Tax Act of 1961 from the Assessment Unit, Income Tax Department for the regular Assessment under Section 143(3), pertaining to A.Y. 2017-18,” a regulatory filing stated.

The notice refers to a tax demand of Rs.58.91 crore for additions and disallowances made during the assessment under Section 143(3). “The bank is in the course of challenging the said order before an appropriate court against disallowances or additions made in the said order within the prescribed timelines,” the filing stated.

The bank has claimed that it does not expect the demand to have a significant impact on its finances or operations. It is in the process of challenging the order in the appropriate court within the timeframe specified.

“The Bank does not reasonably anticipate that the aforementioned demand notice would have any significant impact on its financials, operations, or other activities. The bank is in the process of challenging this demand notice in the appropriate forum,” it added.

Tamilnad Mercantile Bank Ltd’s shares closed at Rs.415.00, up Rs.0.45, or 0.11%, on the BSE.