Top bureaucrats in the country lobbied hard for tax relief to Mahindra Satyam Computer Services Ltd (MSCSL) before the case eventually reached the courts.
A senior finance ministry official told Business Standard, on the condition of anonymity, that the top echelons of the government tried to convince the Central Board of Direct Taxes (CBDT) for a sympathetic consideration of the companys plea in the case pertaining to the income of the erstwhile Satyam Computer Services Ltd (SCSL) from abroad.
The official added that the issue was re-considered at the full board meeting in February and the companys plea for tax relief was subsequently rejected. A tax demand of Rs 616 crore was raised on the company.
MSCSL ignored a question on whether the company had approached senior government officials for help in this case and said: We have approached the Supreme Court and they have granted a stay on the issue.
The finance ministry official said CBDT was not averse to taking a sympathetic view of the issue, but it had maintained to the company that it was not possible under the Income Tax Act to re-open this case, as the matter was already settled and relief, if any, could come only from the Supreme Court.