The Income Tax department has imposed a penalty of Rs 564.44 crore on Bank of India, as stated by the public sector lender on Thursday. The bank is taking steps to appeal this decision before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), according to its announcement.
The penalty relates to the Assessment Year 2018-19, with the Income Tax Department, Assessment Unit imposing the penalty based on various disallowances made. Bank of India has received the order under Section 270A of the Income Tax Act, 1961.
Bank of India expressed confidence in its appeal, citing precedents and orders of appellate authorities. They believe they have sufficient factual and legal grounds to support their stance on the matter. The bank expects the entire demand to be overturned based on this, and they reassured that it won’t affect their financial, operational, or other activities.
Shares of Bank of India closed at Rs 137, marking a 3.79% increase over the previous close on the BSE.
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