Central Bank of India’s problems increased, Income Tax Department sent demand notice of ₹ 296 crore; What is the whole matter?

Income Tax Notice to Central Bank of India: The Income Tax Department has sent a demand notice of Rs 296.08 crore to the public sector Central Bank of India. The bank has given this information in its exchange filing on Tuesday. In an exchange filing, the bank said the Income Tax Department has issued a demand notice alleging short payment of tax in the financial year 2024-25. In the filing, the bank said that it has received an assessment order dated March 28, 2026 under the relevant section of the Income Tax Act.

This order mentions some deductions and additional amounts made by the tax authorities, due to which this demand has been issued. The bank said that the demand of Rs 296.08 crore issued by the assessment unit of the Income Tax Department on March 28, 2026 was uploaded on the Income Tax Portal, which was viewed by the bank on March 30, 2026.

Bank will challenge the order of Income Tax Department

The bank has made it clear that it does not agree with this assessment and will challenge the order. The bank said that the process of filing the appeal before the concerned authority has already started and will be completed within the stipulated time frame. The Central Bank of India also expressed confidence in its stand, saying it had solid factual and legal grounds to oppose the demand.

Based on the previous decisions of the appellate authorities in similar cases, the bank is expected to get relief in this case. The Bank stated that the Bank is in the process of filing an appeal in the appropriate forum against the rejections/additions made in the above order within the prescribed time limit.

What options does the Central Bank have?

The Bank further stated that in view of the prior judgments/orders of the appellate authorities, the Bank believes that it has sufficient factual and legal basis to justify its position in the matter and keeping in view the relief required, the Bank expects that the entire demand will be dismissed.

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No impact on bank operations

The bank also said it does not expect any financial or operational impact due to the demand notice. He believes that the case will be resolved in his favor once the appeal process is completed. The public sector bank said that this is not expected to have any impact on the financial, operational or other activities of the bank.