SC to Satyam: Give Rs. 617 cr bank guarantee in tax dispute
April, 15th 2011
The Supreme Court today directed Mahindra Satyam to make its presentation before the Central Board of Direct Taxes (CBDT) relating to its tax dispute within two weeks, and also asked it to furnish a bank guarantee of Rs. 617 crore by April 25.
Within two weeks the petitioner company (Mahindra Satyam) would file a comprehensive petition making its representation before CBDT giving all requisite information for re-assessment of income for year 2003-2004 to 2008-09,, the bench said.
On the receipt of representation, CBDT would hear and decide the matter within two weeks, the bench added.
The court also said the CBDT while passing its order would give proper reasons for it.
The Supreme Court also said the accounts of the company will be de-freezed subject to payment of a bank guarantee of Rs. 617 crore before its registry by April 25.
The apex body also made it clear that the Chairman of Mahindra Satyam would file an undertaking within 48 hours before the registry of the Supreme Court that the company would file the bank guarantee by April 25.
Mahindra Satyam also informed the Supreme Court that it will withdraw the petition filed against Tax Department in the Andhra Pradesh high court challenging its direction to pay tax.
The Supreme Court also made it clear that if Mahindra Satyam is not satisfied with the order which would be passed by CBDT, it can challenge it before the apex court.
Last year, the income tax department had served a notice to Mahindra Satyam, demanding an audit of its accounts for the assessment years 2003-04 to 2008-09 as the company was found guilty of illegally claiming tax credit on fictitious income during the period.
Satyam computer Services, which was hit my a multi-crore fraud committed its owner Ramalinga Raju, was taken over by the Mahindra group in 2009 and rechristened as Mahindra Satyam.