State-owned Bank of India (BoI) on Thursday (March 28) said it has received an order from the Income Tax Department's Assessment Unit for the assessment year 2018-19, imposing a penalty of ₹564.44 crore on various disallowances made.
"...the bank has received the order under section 270A of the Income Tax Act, 1961 from the Income Tax Department, Assessment Unit pertaining to AY 2018-19, wherein the penalty of ₹564.44 crore has been imposed on various disallowances made," according to a stock exchange filing.
In response to the penalty, the bank is taking steps to file an appeal before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) within the stipulated timelines.
The bank is confident in its position and believes it has sufficient factual and legal grounds to defend its case based on precedents and orders of appellate authorities. Consequently, the bank anticipates the entire demand to be overturned.
"The bank is in the process of filing an appeal before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) against the said order within the prescribed timelines.
Looking to the precedence/orders of appellate authorities, the bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter," the Bank of India said.
The penalty has no immediate impact on the financial, operational, or other activities of the Bank of India, "Accordingly, the bank expects the entire demand to subside. As such, there is no impact on the financial, operations or other activities of the bank," it added.
Shares of Bank of India ended at ₹137.00, up by ₹5.00, or 3.79% on the BSE.
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