The public sector Bank of Baroda (BoB) has been issued a demand order of Rs 1,067.82 crore from the Faceless Assessment Unit of the Income Tax Department, pertaining to Assessment Year (AY) 2017-18.
The third largest public sector bank in a regulatory filing confirmed the tax demand order of Rs 1067.82 crore and said “Bank of Baroda believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter and expects the entire demand to subside. The tax order has no impact on financial operations or other activities of the bank."
The bank emphasised that it would avail legal recourse provided in Income Tax Statute against the demand raised in the order and was in process of filing an appeal before the Commissioner of Income Tax (appeals), National Faceless Appeal Centre (NFAC) and writ petition before the High Court against the tax order within the prescribed timelines.
Bank of Baroda founded in 1908 by the Maharaja of Baroda Sayajirao Gaikwad III was nationalised along with 13 other commercial banks in 1969 as public sector undertakings (PSU).
The bank was fined Rs 1.10 crore by the South Africa Financial Intelligence Centre in September 2017 for alleged irregularities in 36 suspicious transactions of the Gupta family flouting anti- corruption laws. The Bank of Baroda Johannesburg branch allegedly let the Gupta family to move several million dollars in business transactions to offshore accounts.
