Karur Vysya Bank (KVB) has received an interim stay from the Madurai Bench of the Madras High Court regarding the re-opening of assessment for the financial years 2020-21, 2021-22, and 2022-23. The bank had filed writ petitions challenging the reassessment. While awaiting the full order, KVB has announced that it will promptly communicate any further material developments.
Legal Relief in Reassessment Case
Karur Vysya Bank has obtained an interim stay from the Madurai Bench of the Madras High Court. The stay pertains to the reassessment proceedings initiated by the Income Tax Department for the assessment years 2020-21, 2021-22, and 2022-23.
Background of the Dispute
The bank had previously filed writ petitions with the High Court challenging the re-opening of the assessment. These petitions addressed notices received under Section 148 and orders under Section 148A(3) of the Income-tax Act, 1961, concerning the reassessment by the Jurisdictional Assessing Officer. The involved parties include the Deputy Commissioner of Income Tax, Circle 1(1), Trichy, and the Addl. Commissioner of Income Tax, Range – 1, Trichy.
Next Steps
The bank will update stakeholders on further developments as they arise. The order copy from the High Court is pending receipt. Currently, KVB asserts that it maintains adequate legal grounds to address the issues involved in the reassessment proceedings. It anticipates no material impact on the bank’s financial condition, operations, or regular business activities as a result of this legal action.
Source: BSE
