Yes Bank Receives Hefty Tax Demand Notice

NEW DELHI: In a surprising turn of events, Yes Bank announced on Saturday that it has been slapped with a demand notice of Rs 2,209 crore for the assessment year (AY) 2019-20. This development comes after the income tax department decided to reopen the said AY in April 2023.

Details of the Reassessment Order

The reassessment order, passed by the National Faceless Assessment Unit of the income tax department on March 28, notably did not include any additional disallowances or additions. This implies that the grounds which led to the initiation of reassessment proceedings have been dropped.

Bank's Stance on the Notice

Yes Bank has clarified that the total income assessed in the original order under section 144 of the Income Tax Act remained unchanged in the reassessment order. Consequently, the bank argues that no demand should have been raised. Despite this, a computation sheet and a Notice of Demand under section 156 have been issued, demanding Rs 2,209.17 crore, including interest of Rs 243.02 crore, which the bank claims is "without any basis".

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