Indian Overseas Bank (IOB) has formally announced the receipt of a Demand Notice from the Deputy Commissioner of Income-tax, Chennai, pertaining to the Assessment Year 2015-16. The notice demands a principal amount of Rs. 766,02,83,968/-. The Bank is actively challenging the additions made in the order and believes it has strong legal grounds to overturn the demand, anticipating no expected impact on its financial operations.
Income Tax Demand Notification
In compliance with statutory disclosure requirements, Indian Overseas Bank (IOB) has informed the stock exchanges that it received a Demand Notice on March 2, 2026. This notice originates from the office of the Deputy Commissioner of Income-tax, Non-Corporate Circle-8, Chennai.
Details of the Demand
The communication, rooted in an order from the Income Tax Appellate Tribunal (ITAT) dated December 31, 2024 (Order No. ITA No. 661 & 914/Chny/2019), pertains to the Assessment Year AY 2015-16. The material contents of the notice demand a total sum of Rs. 766,02,83,968/-. This demand arises from re-computation of income and proposed disallowances made by the tax authority regarding claims submitted in the Bank’s original income tax returns.
The notice also indicates that a penalty under section u/s 271(1) (c) may be imposed separately.
Bank’s Response and Outlook
The Bank has confirmed that it is currently preparing to file an appeal before the appropriate forum to contest the disallowances and additions specified in the demand order. Management is proceeding to file this appeal within the mandated timelines.
Crucially, the Bank holds a strong position based on precedents and prior orders from appellate authorities. IOB management asserts that it possesses adequate factual and legal grounds to substantiate its stance in this matter. Considering the expected relief upon appeal, the Bank currently anticipates that the entire demand will subside, resulting in no impact on the Bank’s financial condition, operations, or other activities.
Source: BSE
