UCO Bank moves HC against IT order levying fine on it

The United Commercial Bank has moved the Delhi High Court challenging an Income Tax notice that slapped a penalty of over Rs 54 lakh on its branch for not making tax deduction at source on a fixed deposit account worth Rs 7.7 crore opened by the HC.

A bench of Chief Justice Dipak Misra and Justice Sanjiv Khanna, before whom the bank's plea came up for hearing recently, has referred the matter to a larger bench and fixed July 15 for further hearing.

The bank approached the court following the I-T department's March 29 order that the high court branch of UCO Bank was liable to pay more than Rs 54 lakh for violation of Income Tax act for not deducting TDS amount on the interests generated on a Fixed Deposit Receipt of more than Rs 7.7 crore. (PTI)