Bank of India (BoI) said it has received an order from the Income Tax Department, Assessment Unit, pertaining to AY 2018-19, in which a penalty of ₹564.44 crore has been imposed on various disallowances made.

The public sector bank, in an exchange filing, said it is in the process of filing an appeal before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), against the said order (issued under section 270A of the Income Tax Act, 1961) within the prescribed timelines.

Looking to the precedence/orders of appellate authorities, the bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter, it added.

“Accordingly, the bank expects the entire demand to subside. As such, there is no impact on financial, operations or other activities of the Bank,” BoI said.