New Delhi, March 31 (IANS): Bank of India has received a demand notice from the Assessment Unit, Income Tax Department, pertaining to AY 2016-17 to the tune of Rs 1,127.72 crore.

The Bank has received a demand notice under section 156 of the Income Tax Act, 1961, pertaining to the annual year (AY) 2016- 17 wherein certain disallowances have been made.

“The Bank is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) against the said order within the prescribed timelines. Looking at 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. Accordingly, the Bank expects the entire demand to subside. As such, there is no impact on financial, operations or other activities of the Bank,” Bank of India said.

Bank of India said it would avail recourse provided in the Income Tax Statute against the demand of Rs 1,127.72 crore raised in the order.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)