City Union Bank has received an assessment order from the Income Tax department for the assessment year 2024-25. The order, issued by the Assessment Unit, has reduced the bank’s refund claim by ₹97,22,24,471 under section 143(3) of the Income Tax Act. The assessment order was received on 24 March 2026 and has raised no demand.
The order was made by partially disallowing certain claims made by the bank. These include deductions claimed under sections 36(1)(viia) and 36(1)(vii), along with the disallowance of three other deductions. Despite this, City Union Bank maintains that its claims for deductions are fully allowable as per judicial pronouncements in the bank’s own case. The bank also noted that similar claims were allowed by the same assessment unit in previous years.
City Union Bank is in the process of filing an appeal against the assessment order. The bank believes there are fair chances for the appeal to be allowed in its favour, as these issues have been settled in favour of the bank in the past. The bank has stated that the demand would not have any material impact on its financial statements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).