The Hindu : Front Page : File petition before CBDT, Mahindra Satyam told

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File petition before CBDT, Mahindra Satyam told

NEW DELHI: The Supreme Court on Friday directed Mahindra Satyam to file a petition before the Central Board of Direct Taxes (CBDT) relating to its tax dispute within two weeks, while asking the company to furnish a bank guarantee of Rs.617 crore within 48 hours to defreeze its bank accounts.

A three-judge Bench headed by Chief Justice S.H. Kapadia directed Satyam to file its representation before the CBDT, asking it to re-quantify its tax liability.

The court also fixed CBDT a timeframe of two weeks to decide the Income-Tax liability of the company and pass a “reasoned order”.

“Within two weeks, the petitioner company (Mahindra Satyam) would file a comprehensive petition making its representation before CBDT giving all requisite information for reassessment of income for year 2003-2004 to 2008-09,” the Bench declared.

“On receipt of representation, CBDT would hear and decide the matter within two weeks,” the Bench added.

The apex court said the accounts of the company will be “defreezed”, 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”.

When contacted, a Mahindra Satyam official declined to comment stating the matter was sub judice.

However, the apex court also clarified, “we make it clear that we do not make any opinion or expression in this matter” and gave CBDT a free hand to decide. It also said that “Satyam can challenge the order of the CBDT if aggrieved”. - PTI

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