Private sector lender Tamilnad Mercantile Bank Ltd announced on Tuesday, March 11, that it has received a Notice of Demand under Section 156 of the Income Tax Act, 1961, from the Income Tax Department’s Assessment Unit for the assessment year 2017-18.
In a regulatory filing, Tamilnad Mercantile Bank stated, “We wish to inform you that the Bank has received a Notice of Demand under Section 156 of the Income Tax Act, 1961, from the Assessment Unit, Income Tax Department for the regular assessment under Section 143(3), pertaining to A.Y. 2017-18.”
The notice concerns a tax demand of ₹58.91 crore due to additions and disallowances made during the assessment under Section 143(3). The bank is currently challenging the order in the appropriate forum regarding the disallowances.
The bank has indicated that it does not anticipate the demand to significantly affect its financials or operations. It is actively pursuing the challenge against the order within the prescribed timelines.
“The Bank does not reasonably expect the aforementioned demand notice to have any material impact on its financials, operations, or other activities. The bank is in the process of contesting this demand notice in the appropriate forum,” it stated.
As of the latest trading session, shares of Tamilnad Mercantile Bank Ltd closed at ₹415.00, reflecting an increase of ₹0.45, or 0.11%, on the BSE.