Mah Satyam may move HC against CBDT provisional order
February, 10th 2012
Mahindra Satyam is looking to approach the Andhra Pradesh High Court against the provisional order issued by the Central Board of Direct Taxes (CBDT), reports CNBC-TV18's Kritika Saxena quoting sources.
It is learnt that the software company's team is actively looking at taking legal remedies filing a case in the Andhra Pradesh High Court. Earlier on February 4, the CBDT had sent a provisional order to Mahindra Satyam attaching property of the erstwhile company in order to protect revenues that were due from the firm.
According to sources, the legal team will finalise the draft report by next week and will submit it to the board for approval. This provisional order will come against the section 281 of the Income Tax Act. This was something that Mahindra Satyam had indicated on the February 4 itself that they will be looking at fighting against.
The company is already battling couple of other tax cases, so of course there is the pressure on the firm to probably look at completing all these issues before the merger. But sources indicated that the merger timeline will not be affected. In fact in an earlier interview to CNBC-TV18, Vineet Nayyar had clearly said that the merger will not be impacted by any kind of issue with the CBDT. He also indicated that they will be taking legal remedies for the same and we would get details on this shortly.