Income Tax Department asks Yes Bank to pay up Rs 2,209 crore

New Delhi: The Income Tax Department has raised a demand of Rs 2,209.17 crore, including interest, against Yes Bank Ltd, according to a stock exchange filing by the private sector bank.

Yes Bank had initially received an order from the Income Tax Department on September 30, 2021 for the assessment year 2019-20, when it was granted a refund in line with the return of income filed earlier, However, the case was reopened by the income tax department in April 2023, according to the regulatory filing.

The reassessment order was passed by the income tax department of the National Faceless Assessment Unit on March 28, in which effectively the grounds on which the reassessment proceedings were initiated have been dropped.

Hence, the total income which was assessed in the original assessment order should have remained unchanged and consequently, no demand should have been raised against the bank,” stated the filing.

Yes Bank believes that it has adequate grounds to reasonably substantiate its position in this matter and clarified that the bank does not expect any adverse impact on its operations.

“The bank would pursue an appeal and rectification proceedings against the said reassessment order under the applicable law,” Yes Bank has further stated in the filing.

Yes Bank stocks were trading at Rs 16.88 per share on Friday, shares of the bank have fallen 27.24 per cent in the last 12 months.

Yes Bank reported a close to three-fold jump in its net profit to Rs 612 crore for the third quarter that ended December 2024 on the back of a decline in provisions for bad loans.

The private-sector bank had earned a net profit of Rs 231 crore in the same quarter of the previous financial year.

Total income increased to Rs 9,341 crore during the third quarter of the ongoing fiscal year from Rs 8,179 crore a year ago.

Interest income increased to Rs 7,829 crore from Rs 6,984 crore. Net interest income grew 10 per cent to Rs 2,224 crore as against Rs 2,017 crore in the third quarter last fiscal year.

IANS