Yes Bank Faces ₹2,209 Crore Demand from Income Tax Department
Yes Bank announced on Saturday that the income tax department has issued a demand notice totaling ₹2,209 crore concerning the assessment year 2019-20. This development follows the reopening of the assessment by the income tax department in April 2023.
Details of the Reassessment
In a regulatory filing, Yes Bank stated that the reassessment order, issued by the National Faceless Assessment Unit on March 28, indicated that no additional disallowances or additions were made. Consequently, the total income originally assessed under Section 144 of the Income Tax Act remained unchanged.
Contradictory Demand Notice
Despite the reassessment confirming the original findings, a computation sheet and a Notice of Demand issued under Section 156 of the Income Tax Act called for payment of ₹2,209.17 crore, which includes ₹243.02 crore in interest. Yes Bank asserted that this demand seems to lack a solid legal basis.
Bank’s Position and Future Steps
The bank expressed confidence in its position regarding this matter, indicating that it has sufficient grounds to contest the demand. Yes Bank does not anticipate any significant negative impact on its financial stability or operations due to the notice issued.
In response to this situation, Yes Bank plans to initiate appeals and seek rectifications concerning the reassessment order in accordance with applicable laws.
Conclusion
This ongoing situation underscores the complexities involved in tax assessments and the importance of transparency and accuracy from tax authorities. As Yes Bank navigates this demand, the outcomes may have implications for its future financial dealings.
