City Union Bank Receives Income Tax Assessment Order
City Union Bank Ltd. announced today, March 25, 2026, that it received an assessment order for income tax from The Assessment Unit, Income Tax department.The order pertains to the assessment year 2024-25. The Income Tax department reduced the bank’s refund claim by Rs. 97,22,24,47L and raised Nil demand. The order disallowed certain deduction claims made by the bank under sections 36(lXviia) and 36(lXvii), along with three other deductions.
According to the bank, its deduction claims are fully allowable based on judicial pronouncements and previous assessments by the same unit, which had allowed similar claims in earlier years. The bank intends to file an appeal, and anticipates a favorable outcome. City Union Bank stated that the demand is not expected to have a material impact on the bank's financial statements.
| Sl. No | Description | Details |
|---|---|---|
| 1 | Name of the Authority | The Assessment Unit, Income Tax department |
| 2 | Nature of details and actions taken or orders passed | For the Assessment year 2024-25 Assessment order under section 143(3) of the Act was passed by reducing the refund claim of the bank by Rs.97,22,24,47L and raising Nil demand. |
| 3 | Date of receipt of direction or order, including any ad- interim or interim orders or any other communication from the authority | 24.03.2026 |
| 4 | Details of the violation(s) /Contravention (s) com m itted or alleged to be committed | The order was made by disallowing partially certain claims made by the bank which include deduction claimed under section 36(lXviia) and 36(lXvii) and disallowing other three deductions. |
| 5 | Impact on financial, operation or other activities of the listed entity, quantifi able Imonetary terms to the extent possible. | The Bank's claim for deduction is fully allowable as per the judicial pronouncements in bank's own case. Further, in earlier years, the same assessment unit allowed similar claims. The Bank is in the process of filing the appeal and there are fair chances for allowing the appeal in bank's favor as these issues are so far settled in favour of the bank. The demand would not have any material impact on the financial statement of the Bank. |
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