Tamilnad Mercantile Bank receives ₹59 crore Income Tax demand notice for AY 2017-18

Private sector lender Tamilnad Mercantile Bank Ltd on Tuesday (March 11) said 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.

"...we wish to inform 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," Tamilnad Mercantile Bank said in a regulatory filing.

The notice pertains to a tax demand of ₹58.91 crore due to certain additions and disallowances made during the assessment under Section 143(3). "The bank is in the process of challenging the said order in the appropriate forum against disallowances /additions made in the said order within the prescribed timelines," it said.

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The bank has stated that it does not expect the demand to have any material impact on its financials or operations. It is in the process of challenging the order through the appropriate forum within the prescribed timelines.

"The Bank does not reasonably expect the aforesaid demand notice to have any material impact on its financials, operations or other activities. The bank is in the process of challenging this demand notice in the appropriate forum," it added.

Shares of Tamilnad Mercantile Bank Ltd ended at ₹415.00, up by ₹0.45, or 0.11%, on the BSE.

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