Mahindra Satyam accounts frozen by I-T department

Mahindra Satyam accounts frozen by I-T department

The department issued notice to Mahindra Satyam (formerly Satyam Computer) to pay Rs 616.53 crore in taxes, the company said. Mahindra Satyam has now moved the Andhra Pradesh high court seeking a stay challenging the I-T department’s claim. A company source said that the demand was raised on the basis of the income declared by the company during disgraced former chief Ramalinga Raju’s time. 

The IT department refused to buy the line that Satyam had fictitious income and insisted it was real income.

The company said that the CBDT has rejected various petitions filed by the company seeking relief’s for reopening of past assessments for the Assessment Years 2003-04 to 2008-09; determining the actual income based on the findings of investigating agencies; and granting a stay on recovery proceedings for the said as sessment years.

Some market analysts tracking the Mahindra Satyam stock are confident that the company may win the case against the I-T department, and do not see a major downside in the stock. “It would not have any significant impact on the stock,” said an analyst of Karvy group.

“The company has a strong case to plead for. It may emerge successful in the writ petition filed in the High Court of Andhra. Sales figures were inflated during 2003-04 to 2008-09. Hence, the question of taxing that sales revenue does not arise,” said tulsian.com chief S P Tulsian.

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