City Union Bank (CUB) has received an assessment order from the Income Tax Department concerning the Assessment Year 2024-25. The order resulted in a reduction of the bank’s refund claim by ₹97.22 crore, although it resulted in a Nil demand. The disallowances largely relate to claims under sections 36(1)(viia) and 36(1)(vii). The Bank plans to appeal the order, noting high chances of success based on existing judicial precedents.
Receipt of Income Tax Assessment Order
City Union Bank Limited has formally announced the receipt of an assessment order pertaining to the Income Tax Department for the Assessment Year 2024-25. The communication regarding this order was received by the Bank on March 24, 2026.
Details of the Order
The assessment order, passed under section 143(3) of the Income Tax Act, involved a significant reduction in the bank’s claimed refund amount. Specifically, the refund claim was reduced by Rs. 97,22,24,471/-. Despite this adjustment, the order ultimately resulted in a Nil demand being raised against the Bank.
Basis for Assessment Disallowances
The order was passed after partially disallowing certain claims made by the Bank. These disallowed claims primarily include deductions claimed under section 36(1)(viia) and 36(1)(vii), alongside three other minor deductions.
Financial Impact and Appeal Strategy
The Bank asserts that the claims for deduction are fully allowable based on established judicial pronouncements, including rulings in the bank’s own case. Furthermore, similar claims were permitted by the same assessment unit in preceding years. Consequently, the Bank is preparing to file an appeal, expressing that there are fair chances for the appeal to be allowed in its favor as these tax issues are currently settled favorably in the banking sector.
Crucially, the Bank has determined that the demand resulting from this order will not have any material impact on the financial statement of the Bank.
Source: BSE
