Yes Bank gets demand notice of Rs 2,209 crore from I-T dept for AY20

Yes Bank on Saturday said it has received a demand notice of Rs 2,209 crore for the assessment year 2019-20.

The said assessment year was reopened by the income-tax department in April 2023, Yes Bank said in a regulatory filing. 

The reassessment order was passed by the National Faceless Assessment Unit of the income-tax department on March 28, wherein no additional disallowances or additions were made, that is, the grounds on which the reassessment proceedings were initiated have been dropped, it said.

Thus, the total income that was assessed in the original assessment order passed under section 144 of the Income Tax Act has remained unchanged in the reassessment order and consequently, no demand should have been raised against the bank, it said.

However, it said, despite this, the computation sheet and the Notice of Demand issued under section 156 of the Act, of even date, have raised an income-tax demand amounting to Rs 2,209.17 crore, including interest of Rs 243.02 crore, which prima facie appears to be "without any basis".

Therefore, the bank believes that it has adequate grounds to reasonably substantiate its position in this matter and does not expect any material adverse impact on its financial, operation or other activities due to the said order, it said.

The bank would pursue an appeal and rectification proceedings against the said reassessment order under the applicable law, it added.