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Yes Bank has received a tax demand notice of Rs 2,209 crore from the Income Tax Department for AY 2019-20, including Rs 243.02 crore in interest. The bank stated that the demand appears to be “without any basis.” The reassessment, conducted by the National Faceless Assessment Unit, did not make any fresh additions, leaving the originally assessed income unchanged. Despite this, the authorities raised a tax demand, which Yes Bank plans to challenge through legal channels. Investors and stakeholders are closely monitoring the situation.
Reassessment Process And Yes Bank’s Response
In a regulatory filing on Saturday, Yes Bank revealed that tax authorities reopened its assessment year in April 2023. The National Faceless Assessment Unit (NFAU) of the Income Tax Department carried out the reassessment process. The NFAU conducted a detailed review of the bank’s financial records and activities for the relevant period. After completing the reassessment, the NFAU issued its order on March 28, 2.
According to the bank, the reassessment process made no additional disallowances or additions. This indicates that the tax authorities dropped the grounds for initiating the proceedings, and the total income assessed in the original assessment order under Section 144 of the Income Tax Act remained unchanged. Based on this, the bank asserts that the authorities should not have raised any tax demand.
Despite the reassessment, the computation sheet and demand notice issued under Section 156 of the Income Tax Act show a tax liability of Rs 2,209.17 crore. Yes Bank has raised concerns about the validity of this demand, arguing that it lacks proper justification. The bank intends to challenge the notice through appropriate legal channels. This development comes at a critical time when Yes Bank is focused on achieving financial stability and growth after overcoming significant challenges in past years. The outcome of this legal battle could have implications for the bank’s financial position and future plans.
Industry experts believe this case highlights potential discrepancies in tax assessment procedures. It could set a precedent for future reassessment cases.
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