Yes, you are correct. The Bank of Baroda is facing an income tax demand of Rs 1067.82 crore for the Assessment Year (AY) 2017-18 from the Income Tax Department. This information was disclosed by the bank in a regulatory filing.
Here’s a breakdown of the situation:
- Demand: Rs 1067.82 crore
- Assessment Year: 2017-18 (Income earned during the financial year 2016-17)
- Source: Income Tax Department
Bank’s Response:
- The Bank of Baroda believes it has strong legal grounds to contest the demand.
- They are planning to file an appeal with the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), or a writ petition before the High Court.
- The bank’s financial operations and other activities are not expected to be impacted by this ongoing dispute.
Possible Reasons for the Demand (These are speculations, not confirmed reasons):
- Discrepancies in income declaration
- Differences in interpretation of tax laws
- Unclearances around certain financial transactions
Overall Impact:
- The income tax demand has not affected the bank’s current financial performance.
- The final outcome of the dispute will depend on the appeals process.
Additional Information:
- You can find more details about this news in various financial news websites by searching for “Bank of Baroda Income Tax Demand”.
It’s important to note that this is an ongoing situation, and the final outcome will depend on the appeals process.
Bank of Baroda Faces ₹1067.82 Crore Income Tax Demand
The Bank of Baroda has been slapped with a significant income tax demand of ₹1067.82 crore for the Assessment Year (AY) 2017-18 by the Faceless Assessment Unit of the Income Tax Department. This news came to light on June 29, 2024, through a filing by the bank with the Bombay Stock Exchange (BSE).
Here’s a breakdown of the situation:
- Demand Notice: The bank received the demand notice on June 28, 2024, under Section 156 of the Income Tax Act, 1961.
- Reason for Demand: The specific reason for the demand hasn’t been disclosed publicly. However, it likely pertains to a disagreement between the bank and the Income Tax Department regarding taxable income for the AY 2017-18.
- Bank’s Response: The Bank of Baroda intends to contest the demand. They plan to file an appeal with the Commissioner of Income Tax (Appeals), the National Faceless Appeal Centre (NFAC), or a writ petition before the High Court. The bank believes they have strong legal grounds to challenge the demand and expects it to be dismissed entirely.
- Financial Impact: The bank asserts that the demand has no bearing on its financial operations or day-to-day activities.
Here are some additional points to consider:
- This type of disagreement between tax authorities and businesses is not uncommon. Companies have the right to appeal tax demands they believe are unfair.
- The final outcome of this case will likely take some time to be resolved.
Further Resources:
- You can find the official announcement by Bank of Baroda regarding the income tax demand notice here: Bank of Baroda notice on income tax demand
- You can stay updated on the case by following news articles related to “Bank of Baroda” and “Income Tax Demand”.
