I-T dept raises Rs571.5 cr demand against Mahindra Satyam
The Income Tax (I-T) department has raised tax demand of Rs571.51 crore on Satyam Computer Services Limited, now Mahindra Satyam in the period of 2003-04 and 2008-09. HT reports.business Updated: Sep 14, 2011 22:27 IST
The Income Tax (I-T) department has raised tax demand of Rs571.51 crore on Satyam Computer Services Limited, now Mahindra Satyam.
“The demand outstanding of Satyam Computer Services stands at Rs571.51 crore and there is no appeal pending with the Income Tax Appellate Authority,” a senior I-T official said.
The demand pertains to the period of 2003-04 and 2008-09, before Satyam Computer Services came under the Mahindra fold.
Under the directions of the Supreme Court, the company had deposited a bank guarantee of Rs617 crore to the I-T department against its notice for the same amount for questionable years early this year. The company also challenged in the Andhra Pradesh high court the Department's decision to call for a special audit of accounts during 2001-07.
The company has been fighting a legal battle with the I-T Department over taxing the company for the questionable years where Satyam Computer management resorted to widespread financial irregularities that included inflating sales figures. Mahindra Satyam management declined to comment on the issue.
Sources said the company filed writ petitions before the Andhra Pradesh high court to reopen the assessment for assessment year 2002-03 and sought directions that fresh assessments should be carried out after removing the fictitious sales.